REGISTER A MORTGAGE
The Isle of Man Ship Registry is located in an OECD white listed jurisdiction with Aa1 credit rating where owners can record mortgages against their vessels securely.
Mortgages can be registered against vessels on Part I (Merchant Vessels, Commercial and Pleasure Yachts) and Part III (Local Fishing Vessels) of the register.
It is possible for there to be more than one mortgage registered against a ship at any particular time. Mortgages rank in priority according to their time and date of registration. Priority is shown in the register by way of a letter.
There are two types of mortgage that can be recorded an ‘account current’ and a ‘Principal Sum and Interest’.
A mortgage to secure sums due on an account current is by far the most common form of mortgage. A specific sum of money is not mentioned on the Mortgage deed; instead the borrower (usually the mortgagor) has an ongoing account with the mortgagee. The sum owing at any given time will vary and will not be recorded in the register.
Principal sum and Interest
In contrast to the account current, this form of mortgage specifies the amount borrowed (in any currency) and the instalments in which it is to be repaid together with the rate of interest.
Mortgage of Intent
The Isle of Man also offers the option to record a "mortgage of intent" which is valid for a period of up to 30 days and can be renewed if required. This is useful for securing priority for a mortgage on a vessel that has not yet registered.
The following mortgage documents can be downloaded: