Paragon Bank Ferry Finance - Rate Table (October 2026)
| Finance Type | Indicative Rate | Min Loan | Max Loan | Max LTV | Max Term | Key Feature |
|---|---|---|---|---|---|---|
| Secured Business Loan | 7–12% p.a. | £100,000 | £2,000,000 | 75% | 8 years | Specialist bank with flexible underwriting and accessible minimum loan size |
Rates indicative for October 2026. Subject to status, MCA survey and coding. Contact us for a tailored quotation. Compare all 9 lenders →
About Paragon Bank and Ferry/Passenger Vessel Finance
Paragon Bank is a UK specialist lending bank - originally focused on residential buy-to-let mortgages but now operating a substantial commercial lending division covering asset finance and secured business loans. Their passenger-vessel lending product is a secured business term loan, which gives borrowers flexibility in how the vessel is owned and operated, including charter arrangements and multi-vessel structures.
Paragon's indicative rates for ferry and passenger-vessel finance range from 7% to 12% per annum, with the loan-to-value capped at 75%. This is slightly lower than some competitors' 80% LTV limit, meaning Paragon borrowers need a larger deposit or equity stake - a point worth factoring into the total financing picture. However, Paragon's minimum loan size of £100,000 makes them accessible to smaller operators that larger banks will not serve, and their underwriting process is more flexible and case-specific than a credit-scoring model.
Paragon's maximum loan of £2 million makes them suitable for mid-range passenger-vessel acquisitions - single river ferries, tourist cruise vessels, water-taxi fleets, and smaller coastal passenger craft. Terms run to 8 years, which is slightly shorter than Lombard or NatWest but competitive among specialist banks. Paragon is FCA-regulated and PRA-authorised, providing the stability and consumer protection that long-term borrowers require.
Strengths
- Accessible minimum of £100,000 serves smaller operators including independent tourist-boat and water-taxi businesses.
- Flexible, case-by-case underwriting that can accommodate mixed income streams and non-standard operating models.
- Competitive rates from 7% - better than some specialist non-bank lenders for well-qualified operators.
- Specialist bank with FCA/PRA regulation providing stability and long-term lending commitment.
Limitations
- LTV capped at 75% - lower than NatWest, HSBC, Lombard, and some other lenders - requiring a larger borrower deposit.
- 8-year maximum term is shorter than Lombard or NatWest's 12 years, leading to higher monthly repayments.
- Maximum £2 million excludes larger RoPax and multi-deck passenger ferry acquisitions.
Is Paragon Right for My Vessel?
Paragon is a good fit for owner-operated ferry and passenger-vessel businesses - tourist operators, river crossings, water-taxi fleets - requiring between £100,000 and £2 million who need a specialist bank's flexibility but are comfortable with a 25% deposit requirement and 8-year terms.
As a whole-of-market broker, Doulton Bridging Finance compares Paragon Bank against all other lenders before making a recommendation. See all lenders →