HSBC Bank (Malta) plc have launched a new finance scheme aimed at both prospective and existing boat and yacht owners. The Yacht Finance Scheme is the first Maltese banking product that is specifically designed to finance or refinance boats and yachts.

Speaking at the launch yesterday, HSBC chief executive officer Shaun Wallis said that Malta is an extremely attractive place to have a boat. This should encourage customers to finance the ownership of a boat and have some fun.

HSBC customers may borrow between Lm30,000 and Lm250,000, providing a mortgage on the vessels as the primary security, with the scheme providing up to 80 per cent of the value of the vessel, repayable over a maximum period of 10 years. The bank will be charging a competitive variable interest rate of two per cent over the bank’s base rate, meaning that at current levels, customers would be charged interest at 5.25 per cent per annum.

HSBC is also introducing a special loan offer for all loans taken before 31 March 2006 that will benefit from an interest rate of 4.75 per cent. In the case of switchers (existing customers refinancing borrowings with other lenders), the bank will also waive processing and legal fees. Customers will also need to hold an insurance policy on the boat, which would be pledged to the bank.