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Aviation Mortgage - Get Rates & Apply Online
An Aviation Mortgage is a special type of loan used to buy airplanes, where the plane itself acts as the guarantee for the loan. If the buyer can't pay back, the lender can take the plane. Interested in learning more about how these loans work? Feel free to ask!
- Fastest and easiest application process
- Dedicated support
- Loan disbursed within 24 hours
- No additional charges for early repayment
What are the benefits of Aviation Mortgage?
Aviation Mortgages provide specialized financing options for purchasing and refinancing aircraft. This type of mortgage caters specifically to the aviation industry, allowing buyers to acquire various types of aircraft with manageable payment structures. By offering tailored loan terms and interest rates, Aviation Mortgages help individuals and businesses invest in aviation assets while optimizing their financial expenditures.
Fleet financing
Lower interest rates
Flexible terms
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What are the different types of Aviation Mortgage?
Legal Mortgage
A legal transfer of interest in an aircraft to a lender as security for a loan.
Equitable Mortgage
An equitable charge on an aircraft, usually lacking the formalities of a legal mortgage.
Chattel Mortgage
A mortgage over movable property, such as aircraft, where the lender holds rights until the loan is repaid.
What is an Aviation Mortgage?
Definition and Purpose of Aviation Mortgage
An aviation mortgage is a type of loan used to buy an aircraft, where the aircraft itself is used as collateral. This means if the borrower fails to repay the loan, the lender can take ownership of the aircraft. It helps buyers purchase planes without paying the full cost upfront.
Types of Aviation Mortgages
Common types include legal mortgages (a formal transfer of interest in an aircraft to a lender until the loan is repaid), equitable mortgages (less formal but still give the lender an interest in the aircraft), and chattel mortgages (specifically used for movable property like aircraft, securing the lender’s interest until the debt is cleared).
Key Features and Risks
Aviation mortgages often require a down payment, have set repayment terms (sometimes up to 20 years), and may include tax benefits for business use. If loan payments aren’t made, the lender has the right to repossess the aircraft, so borrowers should be sure they can meet the payment schedule.
Real Scenarios
Construction Company Needing Fast Working Capital
Situation
A construction firm had a short-term cash gap before a large invoice was paid and needed £85,000 to cover materials and payroll.
Challenge
Traditional bank applications were too slow; they needed a decision and funds within days.
Outcome
Funding Agent matched them with a lender; they received a working capital facility and bridged the gap until the invoice was paid.
Ecommerce Business Preparing for Peak Season
Situation
An online retailer needed around £120,000 to stock up ahead of Black Friday and the Christmas rush.
Challenge
They wanted flexible terms and a quick turnaround so stock could be ordered in time.
Outcome
Through Funding Agent they secured a facility, placed orders in time and managed peak demand without cash flow stress.
Marketing Agency Using Invoice Finance
Situation
A marketing agency had strong clients and reliable invoices but often waited 60–90 days for payment.
Challenge
They needed to unlock cash tied up in unpaid invoices to pay staff and take on new projects.
Outcome
Funding Agent connected them with an invoice finance provider; they now access funds against approved invoices and smooth out cash flow.
Property Developer Using Bridging Finance
Situation
A developer needed short-term finance to complete a purchase before selling an existing property.
Challenge
They required a fast decision and flexible terms to align with the sale timeline.
Outcome
Funding Agent matched them with a bridging lender; they completed the purchase and repaid the facility when the sale completed.
FAQ’S
What is an aviation mortgage?
What types of aircraft can be mortgaged?
How do I check if an aircraft has a mortgage?
What happens if the borrower defaults on the mortgage?
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