Ship Mortgage

A ship mortgage is a legal agreement where a shipowner borrows money using their ship as collateral. This means the bank or lender can take ownership of the ship if the owner fails to repay the loan. It works similarly to a home mortgage, where the property secures the loan. Ship mortgages are crucial for financing the purchase, construction, or repair of vessels, allowing owners to operate their ships while managing debt. They are typically registered with maritime authorities to establish legal claims, providing a layer of protection for lenders.