If you are looking to take out a loan to finance your purchase of a boat you will need to look at unsecured and secured loans.

If your boat is under £10,000 an unsecured loan can be taken out anything above this and you should look at getting a secured loan.

The interest rate on both unsecured and secured loans can be fixed or variable, the good thing with secured loans is they usually offer lower rates and can work out financially better than unsecured.

You can take out either loan type through your bank or building society. Your monthly repayments will depend on the loan amount and the term.

If you chose to take out a secured loan you must remember this will be secured against your property and failure to make payments can result in repossession.

Like any financial agreement it is vital you understand what you are signing for. It is better to ask questions before as after you have signed the loan agreement there is little that can be changed. The good news is after all this is done you can enjoy the open sea.