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Blue Men of the Minch
The Minch is a strait that runs between the Outer Hebrides and Scotland. On both sides, treacherous waves crash boats into cliffs and caves--caves where a mysterious race of blue-skinned men wait to lure sailors to their deaths--unless the ship's captain can keep up with rhyme and riddle. The leader of the blue men will shout a rhyme at the boat, and if the captain answers quickly and wittily enough, his boat will pass unharmed.
Asrai (or Ashray)
This legend from the British Isles says that at night, if you look very hard, you can find translucent sea fairies swimming in clear pools of water. Some have been captured, and one poor sailor tried to keep his by wrapping her in seaweed. Unfortunately, if they are exposed to light, they turn into a puddle of water.
Lusca
Around the Caribbean, it is said that a giant beast--half shark, half giant octopus--lurks in the waters, waiting to destroy passing ships. They live and roam in the blue holes, an interconnected system of underwater caves. The last thing the sailors see is a giant whirlpool before their ship is pulled into the depths by the giant tentacles of the lusca.
Selkie
Scottish legend has it that there are seals that can change into human form by removing their skin and return to the sea by putting it back on. If a human steals that skin, the selkie must remain in human form until she gets it back. Some of these trapped selkies marry their captors and have children, but if they find their skin, they will still return to the ocean. However, in one case, when a husband was drowning, the selkie put on her skin to save him, knowing she could not return to human form for seven years.
Encantado
It's hard to find someone who isn't captivated by dolphins; they're just so cute. In South America, there is a sea creature that looks like a dolphin but can transform himself into a gorgeous human male. Once human, he finds a girl to seduce and impregnate before he returns to the sea. Once the child is old enough, it longs to live life like its father and dives into the ocean to become an encantado himself.
Finfolk
Finfolk are a type of merpeople, sort of. They have their own form under water but can shapeshift in varying degrees to look fully human or half human. Once a year, they come up to the shores of the Orkney Islands to kidnap humans and take them to their elaborate, underwater cities as captive spouses. The only way to save yourself is to toss silver coins at them. They are super greedy for silver and become distracted long enough for you to get away.