Ferry & Passenger Vessel Finance

Lombard Ferry and Passenger Vessel Finance Rates October 2026

Finance Lease from 6–10.5% per annum. Up to 80% LTV, terms to 12 years. Independent broker comparison across the whole UK lender market.

Rates updated

Lombard Ferry Finance - Rate Table (October 2026)

Finance TypeIndicative RateMin LoanMax LoanMax LTVMax TermKey Feature
Finance Lease6–10.5% p.a.£500,000No published cap80%12 yearsFinance lease with VAT reclaim benefit; suited to larger established operators

Rates indicative for October 2026. Subject to status, MCA survey and coding. Contact us for a tailored quotation. Compare all 9 lenders →

About Lombard and Ferry/Passenger Vessel Finance

Lombard, part of NatWest Group, is the UK's largest asset finance provider and operates a substantial marine lending desk capable of structuring bespoke finance-lease facilities for commercial passenger vessels. Their finance-lease product is particularly attractive for VAT-registered operators because VAT on the vessel cost can be reclaimed by the lessee as input tax - a material cashflow advantage on high-value ferries where VAT alone can amount to hundreds of thousands of pounds.

Lombard's rates for ferry and passenger-vessel finance leases currently sit between 6% and 10.5% per annum, with the lower end of that range available to large, established operators with strong balance sheets, long trading histories, and strategically important vessels such as fixed-route RoPax or car-carrying ferries. The minimum transaction size of £500,000 reflects Lombard's focus on institutional-grade operators rather than smaller water-taxi or river-crossing businesses.

Finance-lease terms of up to 12 years give Lombard a meaningful advantage when financing larger, longer-lived passenger vessels where operators need monthly costs spread over the full economic life of the asset. Lombard's NatWest Group backing also means they have the balance-sheet capacity to hold very large individual exposures that specialist lenders cannot match.

Strengths

  • Finance lease structure allows VAT-registered lessees to reclaim input VAT - a significant cashflow benefit on high-value passenger vessels.
  • Longest available terms (up to 12 years) minimise monthly outgoings and match the economic life of newer, purpose-built ferries.
  • NatWest Group balance-sheet depth means Lombard can fund very large single facilities that other lenders cannot.
  • Competitive indicative rates from 6% for strong covenant operators with proven revenue streams.

Limitations

  • Minimum deal size of £500,000 excludes smaller river-ferry, water-taxi, and excursion-boat operators.
  • Lombard's credit process is thorough and documentation-intensive - decision timescales can run to several weeks for complex propositions.
  • The lessee does not own the vessel under a finance lease; residual-value risk and title remain with Lombard until a secondary rental or balloon is paid.

Is Lombard Right for My Vessel?

Lombard is best suited to established passenger-ferry operators, ferry companies, and local-authority concession holders funding vessels worth £500,000 or more, particularly where the operator is VAT-registered and wants to spread capital expenditure over 10–12 years. Smaller operators should look at Close Brothers, Wesleyan, or Paragon.

As a whole-of-market broker, Doulton Bridging Finance compares Lombard against all other lenders before making a recommendation. See all lenders →

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FAQs

Frequently asked questions

What is the difference between a Lombard finance lease and hire purchase?

Under a Lombard finance lease, legal title to the vessel remains with Lombard throughout the primary lease period. The lessee has full beneficial use and can claim capital allowances in some structures. The key practical advantage is that VAT-registered lessees can reclaim input VAT on lease rentals, whereas under HP the full VAT is due upfront on the purchase price.

What vessel size and value does Lombard typically consider?

Lombard's minimum transaction size for ferry and passenger-vessel finance is £500,000. They regularly fund facilities up to £5 million and above for major ferry operators, with very large RoPax projects considered on a project-finance or syndicated basis through their corporate banking colleagues.

Does Lombard lend against foreign-flagged passenger vessels operating in UK waters?

Lombard generally prefers UK-flagged vessels registered with the UK Ship Register, as this simplifies the security position. Foreign-flagged vessels can be considered where the operator has a strong covenant and legal opinion confirms adequate security over the asset, but these cases require additional structuring time and cost.

How does Lombard assess seasonal income for passenger-vessel operators?

Lombard's marine underwriters are familiar with seasonal passenger-vessel revenue patterns. They typically average income over a three-year period and may structure seasonal rental profiles or allow capitalised interest during low-season months for established operators with a demonstrable track record.

Can a special purpose vehicle (SPV) borrow from Lombard for a ferry?

Yes, Lombard regularly lends to SPVs established to hold a single vessel, provided the SPV is supported by parent-company guarantees or cross-default provisions linking it to the operating entity's financial covenants. A standalone SPV with no track record and no parental support is unlikely to be accepted.

Asset finance for business purposes is not regulated by the FCA. Rates shown are indicative as at October 2026 and depend on credit profile, term, vessel and deposit. We act as a credit broker, not a lender. Your vessel may be repossessed if you do not keep up repayments.

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