A chattel mortgage is a type of fixed charge taken over identifiable and move-able assets such as plant and machinery. Chattels are defined as any property other than freehold land.
the benefits of a chattel mortgage
Chattel mortgages are normally only available if the customer is a corporate body and is based in England and Wales. Scotland and Channel Islands do not recognise chattel mortgages except for ships and boats or aircraft. Marine and Aircraft mortgages are recognised by statute and can be used throughout the UK and by non-corporate as well as corporate customers.
A chattel mortgage offers direct finance on the security of the asset, when the customer already owns the asset. All risks are with the funding company. Payments take into account residual value thus the user is not covering the whole cost of the vehicle.