Chattel Mortgages Loan

Chattel Mortgages Loan

A Chattel mortgage is a type of fixed charge taken over identifiable and movable assets such as plant and machinery. A fixed rate and fixed period loan agreement secured by a legal charge on specific equipment.

Global Asset Finance and partners loan agreement is simple to understand and is typically used where a company is buying equipment which is not suitable for a hire purchase, rental or a lease agreement.

Examples might be where your company is buying equipment which qualifies for a reduced rate of VAT such as a biomass boiler for a residential care home or other residential building, or an intangible asset of bundle of assets.

You would select the equipment of your choice and Global Asset Finance and partners would sign a loan agreement with your company. This would require your company to pay a fixed number of loan repayments over a  fixed period of time. The interest charges are normally fixed throughout the agreement.

Global Asset Finance and partners would pay the amount of the loan advance to either your company or it’s nominated supplier.

The Chattel mortgages loan is a form of security that Global Asset Finance and partners takes over the equipment you purchased. A mortgage is registered at Companies House informing any interested party that Global Asset Finance and partners has security in the equipment.

Asset finance is sometimes supplied by the way of loan secured by a charge of asset. Usually this will happen where a customer requires finance to update an asset they already owns or decides to finance the asset only after they have already paid the supplier for it, so hire purchase is no longer available.

Secured loans are also used to finance some specialised assets such as ships and aircraft. Unsecured loans will sometimes be used to finance assets with little or no security value to the finance company, such as computer software or furniture. This is suitable for private individuals or businesses.

Product Features

1 to 5 year Year Repayment Terms – This is the minimum and maximum terms in years that the finance agreement will run for.

The useful life and economic life are very important considerations.

1 to 10 Year Repayment Terms – This is the minimum and maximum terms in years that the finance agreement will run for. Long repayment terms require careful examination of the equipment or vehicle, possible technological obsolescence and anticipated usage.

Seasonal Payments

Repayments throughout the agreement vary in line with your seasonal income.

Chattels are defined as any property other than freehold land.

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.

Types of Assets to be financed on a Chattel mortgage:

  • Finance for executive & corporate jets
  • Finance for fixed wing aircraft
  • Finance for helicopters
  • Private jet finance
  • Light aircraft
  • Gyrocopters
  • Microlights
  • Gliders
  • Yachts
  • Mobile Homes