Yacht Lease Finance

Lease at your ease

Our Yacht Lease product is ideal for borrowers seeking to finance their yachts through finance lease contracts.

Main features and benefits of yacht lease finance

• Through Yacht Lease Finance, the bank would provide Yacht Finance loans to borrowers.
• In this way, borrowers would benefit from any fiscal arrangements applicable to Yacht leasing.

Other features and benefits of Yacht Lease Finance:

• You may borrow a minimum of €59,000
• You may borrow up to 80% of the purchase price or yacht valuation, whichever is the lower.
• There is no maximum loan amount.
• The loan has minimum and maximum terms of 3 and 10 years respectively.

What conditions do I need to satisfy to qualify for Yacht Lease Finance?

• You must be an EU citizen residing in Malta.
• You must have had an account with HSBC Malta for at least 6 months. Other cases will be exceptionally considered.
• Your minimum annual income is to be €48,000 (single or joint).
• Your total assets must exceed your liabilities by at least €250,000.
• Repayments are not to exceed 40% of your gross annual income inclusive of any other commitments.

What documentation do I need to produce?

• Your ID card
• A professional marine survey of the boat from a pool of surveyors approved by the bank
• Your latest FS3/payslip or your latest income tax return. The bank may also need to verify details from your bank account statements.
• A Statement of Affairs.

Do I have to pay any fees?

Yes, you would need to pay a one-time upfront arrangement fee of 0.50% of the value of the Yacht Finance Loan.

(Minimum fee €815.28).

This fee does not include other non-HSBC fees, legal fees and professional marine survey expenses.

Do I need to provide any security?

Yes, these are:

• A pledge on the insurance of the yacht.
• A personal guarantee to be given by the directors in case of a corporate borrower.
• A first mortgage on the yacht would always be required to secure borrowings.
• A guarantee by the owner of yacht to cover the borrowings of the principle debtor.

In exceptional circumstances, the bank reserves the right to request additional security.

What is the interest rate charged?

A variable rate of interest of 2.5% over the bank’s base rate. Present effective rate of 5.5% p.a.*

*The current bank’s base rate is 3.00%

Can I afford it?

You need to make sure that repayments are affordable.

Click on the Repayment Calculator icon to determine your monthly repayments. It is important to consider your earnings and your expenses.

The repayment calculator also indicates the Annual Percentage Rate (APR). The APR is stipulated under the Consumer Credit Regulation 2005 under the Consumer Credit Act.

The APR incorporates the total cost of the credit based on:

• interest cost
• processing fees
• legal fees (where applicable)
• third party costs which the borrower may incur to satisfy the conditions of the credit agreement.

Click below to access a Budget Planner which will serve as a guide to find your disposable income. If this is larger than the month's repayment amounts then you should not have any problems meeting your monthly loan commitments.

The bank will also carry out internal credit assessment procedures based on your particular circumstances to establish the feasibility of the proposed repayment arrangement.

This financing is subject to final approval from your branch.

What do I have to do next?

Simple. For more detailed information of how you may avail yourself of a Yacht Lease Finance Loan you can:

• call your Commercial Relationship Manager or your Branch Manager at your HSBC Bank branch
• call our Customer Service on 2380 2380 or
• send us an e-mail