Chattel Mortgages

We support businesses looking to fund the purchase of equipment or vehicles without disrupting their cashflow with hefty upfront costs can take advantage of a chattel mortgage as a flexible financing solution.

  • Quick decisions and finance application turnaround

  • Expertise in many specialist sectors

We believe that all UK businesses have unique needs when it comes to accessing finance

Chattel Mortgages

Many UK businesses choose chattel mortgages because of their fixed repayments, competitive interest rates, and potential tax advantages. This can help with cash flow while still allowing businesses to access essential assets, making chattel mortgages an attractive option for those looking to invest without tying up large amounts of capital upfront.

We believe that all UK businesses have unique needs when it comes to accessing finance

When is a Chattel Mortgage Lease Used?

The most common uses of chattel mortgages include financing business assets such as company vehicles, heavy machinery, and specialised equipment; however, a chattel mortgage loan can also be taken out to fund the purchase of larger assets, such as boats and aircrafts.

Benefits of a Chattel Mortgage Loan

Tax relief

UK chattel mortgages can come with tax benefits, including tax relief on goods and services tax (GST), as well as deductions for interest and depreciation.

Competitive chattel mortgage rates

This secured loan solution lets you take advantage of more competitive interest rates compared to unsecured loans, since the asset you’re purchasing is used as collateral.

Final balloon payment

You can further cut down the size of your monthly payments by opting to pay a lump sum at the end of your chattel mortgage lease term.

We believe that all UK businesses have unique needs when it comes to accessing finance

Apply for a Chattel Mortgage Today

We’re a chattel mortgage lender that understands the complex business needs behind each individual application. That’s why we aim to provide competitive chattel mortgage loan rates and make our application process as straightforward as possible. 

FAQs About Chattel Mortgages

A chattel mortgage is used to finance the purchase of a movable asset, most commonly vehicles, machinery, or equipment used for business purposes. The borrower owns the asset from the start, while the lender takes a mortgage over it as security for the loan.

In the UK, chattel mortgages are more commonly referred to as asset finance, business loan secured on assets, vehicle and equipment finance, or chattel car mortgage. The term “chattel mortgage” itself is used less frequently but is still legally recognised.

At the end of the chattel mortgage term, once all repayments have been made, the mortgage is released. The borrower will no longer have to pay any payments to the lender, nor have any further ties to them.

There are many benefits to chattel mortgages, including:

  • Immediate ownership of the asset
  • Fixed monthly repayments, helping with cash flow
  • Lower interest rates compared to unsecured business loans
  • Capital allowances that can be claimed on the asset (although this is subject to hmrc rules)
  • VAT may be reclaimed upfront if the business is VAT-registered
  • Flexible terms available

Other products you may be interested in

We offer a range of business financing solutions to meet the needs of various industries. Backed with decades of banking and finance experience, our team works with thousands of companies throughout the UK. We help them optimise cashflow and achieve their goals through a range of business finance solutions, including:

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Business Loans

Get the business loan that fits your goals, with fast, flexible funding to help you grow, expand, or seize new opportunities when you need it most.

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Corporation Tax Loans

We offer flexible corporation tax loans to help businesses manage their HMRC obligations smoothly and maintain healthy cash flow.

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Loans and Cash Advances

For those instances when your company needs a quick injection of capital, a cash advance loan is a hassle-free, speedy solution.

Are you a Supplier looking for finance for your customers?

If you sell any form of equipment, machinery or commercial vehicles, why not offer point of sale finance to your customers? You can make supplier finance arrangements through any one of our group businesses, where local knowledge is backed by national support.