Pegasus Narrowboat Finance - Rate Table (October 2026)
| Finance Type | Rate From | Rate To | Max Term | Max LTV | Min Loan |
|---|---|---|---|---|---|
| Hire Purchase (Narrowboat) | 6.8% APR | 11.8% APR | 15 years | 85% | £5,000 |
| Hire Purchase (Widebeam) | 6.8% APR | 11.8% APR | 15 years | 85% | £5,000 |
| Liveaboard Narrowboat | Rate on application | 11.8% APR | 15 years | 85% | £5,000 |
| Refinance / Equity Release | Rate on application | 11.8% APR | 15 years | 85% | £5,000 |
Rates as at October 2026. Indicative only - subject to credit assessment, boat survey, LTV and individual lender criteria. A BSS certificate and CRT licence are required for all inland waterways craft.
About Pegasus Narrowboat Finance
Pegasus is a specialist marine finance lender with a strong track record in the narrowboat and canal boat sector. Its key differentiators are the extended 15-year maximum term and the 85% LTV ceiling - both of which make it particularly attractive for buyers who are managing deposit constraints or want to keep monthly repayments at a manageable level on larger purchases.
The 15-year term is meaningful. On an £80,000 narrowboat financed at 70% LTV (£56,000), the difference between a 10-year and 15-year facility at equivalent rates can be £200–£300 per month. For buyers who plan to live aboard - where the narrowboat replaces or supplements a land-based home - this reduction in monthly outgoings is often decisive. Pegasus's willingness to extend to 15 years sets it apart from the mainstream HP lenders and brings it closer to the terms available on residential mortgages.
The 85% LTV is equally significant. Most competitors cap at 80%, meaning a buyer needs to find 20p in every pound from their own funds. Pegasus's 85% ceiling reduces that to 15p - directly relevant for first-time narrowboat buyers who may be transitioning from renting and have limited savings available. That said, the higher the LTV, the more risk the lender carries, and this is reflected in pricing: borrowers at 85% LTV will typically receive rates toward the upper end of the range.
Pegasus is comfortable with a broader range of narrowboat types than some mainstream lenders - including semi-traditional, cruiser stern, and Dutch barge crossover designs. It will consider older boats provided a satisfactory current hull survey is in place. The minimum loan of £5,000 makes it accessible for buyers of smaller 35–40ft canal boats where the total purchase price may be under £30,000.
Pegasus - Key Advantages
- Extended 15-year term - significantly reduces monthly repayments on larger purchases
- 85% LTV - only 15% deposit required, the most accessible on deposit requirement
- Minimum loan of just £5,000 - suits smaller canal boat purchases
- Specialist marine knowledge - comfortable with a wide range of narrowboat types
- Flexible on older boats where condition is evidenced by survey
Pegasus - Considerations
- Entry rate of 6.8% slightly above cheapest alternatives at 6.5%
- Upper rate of 11.8% APR - one of the higher ceiling rates in the market
- Rate range is wide - higher risk profiles will pay significantly more
- Longer terms mean more total interest paid over the life of the loan