Top 10 Chattel Mortgage Providers UK 2026 | Compare Asset Finance
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Top 10 Chattel Mortgage Providers in the UK
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | Liberty Leasing | Mid-value vehicle and equipment chattel mortgages | £10,000 to £2,000,000 | interest 11% to 16% |
| 2 | Lombard | Large asset purchases with competitive interest rates | Up to £5,000,000 | interest 4% to 11.5% |
| 3 | PlayterBoost | Established firms needing low-rate chattel finance | £30,000 to £50,000 | interest 2.5% to 4% |
| 4 | Reward Funding | High-value chattel mortgages at very low rates | £100,000 to £5,000,000 | interest 0.99% to 3% |
| 5 | Time Finance | Flexible chattel terms up to £5 million | Up to £5,000,000 | interest 5.5% to 13.5% |
| 6 | Admiral leasing | Smaller chattel mortgages starting from £1,000 | From £1,000 | interest 5.5% to 13.5% |
| 7 | Lloyds Bank | High street bank chattel loans up to £50,000 | £1,000 to £50,000 | interest 10.65% to 11.2% |
| 8 | Barclays | Broad chattel mortgage range from a major bank | £1,000 to £25,000,000 | interest 8.5% to 14.9% |
| 9 | Acorn Business Finance | Mid-to-large chattel mortgages for business assets | £15,000 to £5,000,000 | interest 8% to 15% |
| 10 | Aldermore Asset finance | Flexible chattel finance from £1,000 to £10 million | £1,000 to £10,000,000 | interest 5% to 15% |
A chattel mortgage is a form of asset finance that lets UK businesses borrow to buy vehicles, plant machinery, or equipment, with the asset itself used as security. For SMEs and limited companies, choosing the right provider can significantly affect monthly costs and overall value. Comparing the top chattel mortgage providers in the UK helps you find terms suited to your asset type, loan size, and repayment preferences.
When comparing chattel mortgage providers, look beyond the headline rate. Loan ranges vary widely — some lenders fund assets from £1,000, while others focus on high-value machinery up to several million pounds. Also check minimum trading history requirements, asset class expertise, and repayment flexibility. The best provider balances competitive pricing with clear terms and genuine experience in your asset type.
Important: Rates and terms shown are representative. Actual offers depend on your business profile, asset type, and credit assessment. Funding Agent is a commercial finance broker and can match you with suitable chattel mortgage providers from our panel.
Funding Agent
Published loan rangeFrom £10,000 to up to £1,000,000
Rate typeInterest or factor rate
Why it is included:It is included because many business owners need to compare several finance routes before choosing where to apply.
Funding Agent can help businesses compare suitable options across a lender panel, especially when eligibility depends on turnover, sector, trading history, credit strength and available documents.
Best use case: When the borrower wants to avoid applying to one lender at a time.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Why it stands out
- Useful when a business wants to compare lender fit rather than guess which lender to apply to first.
- Can help position the application around the funding purpose, trading profile and available documents.
- Works well as a conversion route for readers who are unsure whether a direct lender will approve a larger unsecured facility.
Need to know
- Funding Agent is a broker, not a lender.
- The lender, not Funding Agent, sets the final rate, term, fees and approval decision.
- The best match may be unsecured, secured, revolving credit, invoice finance or another product depending on the case.
Expert take
Funding Agent is a useful honourable mention for business owners who want to compare lender options before submitting a full application. A larger unsecured loan is not always approved by the first lender a business finds, so understanding lender fit early can reduce wasted time and avoid unnecessary declines.
Liberty Leasing
Published loan range£10,000 to £2,000,000
Rate typeinterest 11% to 16%
Overview: Liberty Leasing is a specialist asset finance provider offering chattel mortgages to UK businesses acquiring vehicles, plant machinery and essential equipment with the asset itself serving as security.
Facilities range from £10,000 to £2,000,000, making it a practical fit for SMEs funding mid-value assets where outright ownership from day one matters for accounting and tax purposes.
Best next step: Suits businesses wanting asset ownership with secured terms.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Immediate asset ownership on completion
- Preserves working capital for operations
- Fixed repayments support budgeting
Need to know
- Interest rates from 11% to 16%
- Asset must meet lender eligibility criteria
- A deposit may be required
Expert take
Liberty Leasing is a solid pick for established SMEs that want a straightforward chattel mortgage on mid-range assets, with transparent pricing and ownership transferring immediately upon drawdown.
Lombard
Published loan rangeUp to £5,000,000
Rate typeinterest 4% to 11.5%
Overview: Lombard, part of NatWest Group, is one of the UK's largest asset finance providers, offering chattel mortgages for businesses funding substantial equipment, vehicle and machinery purchases.
With facilities up to £5,000,000 and competitive headline rates, Lombard suits limited companies and SMEs seeking scale and a lender with deep experience in secured asset lending.
Best next step: Ideal for larger asset purchases needing competitive pricing.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Competitive rates from 4% to 11.5%
- Backed by NatWest Group stability
- Facilities available up to £5m
Need to know
- Strong credit profile typically required
- Funding available within 24 hours
- Asset type must meet lending criteria
Expert take
Lombard brings institutional backing and rate competitiveness that smaller specialists struggle to match, making it a benchmark option for high-value chattel mortgages on vehicles and heavy equipment.
Source:https://www.lombard.co.uk/
PlayterBoost
Published loan range£30,000 to £50,000
Rate typeinterest 2.5% to 4%
Overview: PlayterBoost offers asset finance alongside its wider funding products, with chattel mortgage-style facilities available to UK SMEs that want the asset to secure the borrowing.
With a loan range of £30,000 to £50,000 and notably low interest rates, it can work well for businesses funding modest equipment purchases where keeping borrowing costs down is a priority.
Best next step: Low-rate option for smaller asset finance needs.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Interest rates from 2.5% to 4%
- Funding in as little as 24 hours
- Secured against the asset itself
Need to know
- Loan range capped at £50,000
- Suits card-taking or revenue-generating SMEs
- Affordability evidence may be needed
Expert take
PlayterBoost stands out for its exceptionally low headline rates in the smaller-ticket bracket, though businesses should confirm the chattel mortgage structure aligns with their ownership and tax requirements.
Source:https://www.playter.co/
Reward Funding
Published loan range£100,000 to £5,000,000
Rate typeinterest 0.99% to 3%
Overview: Reward Funding provides substantial asset finance facilities from £100,000 to £5,000,000, structured as chattel mortgages where the purchased asset secures the lending.
Its rates start from just 0.99%, making it one of the most competitively priced options for larger UK businesses acquiring high-value machinery, commercial vehicles or production equipment.
Best next step: Competitive large-facility funding with rapid turnaround.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Rates as low as 0.99% to 3%
- Facilities reach £5,000,000
- Flexible drawdown structure available
Need to know
- Minimum facility of £100,000
- Security and valuation checks apply
- Costs may vary with usage patterns
Expert take
Reward Funding's pricing is hard to ignore for businesses seeking six-figure chattel mortgages. The low-rate structure is particularly attractive for asset-heavy industries replacing or expanding high-value equipment fleets.
Source:https://rewardfunding.co.uk/
Time Finance
Published loan rangeUp to £5,000,000
Rate typeinterest 5.5% to 13.5%
Overview: Time Finance offers asset finance facilities up to £5,000,000, with chattel mortgage structures available for UK businesses purchasing equipment, vehicles or machinery.
It also brings crossover expertise in invoice finance, which can benefit SMEs wanting a single funding partner for both asset-backed borrowing and working capital management.
Best next step: Suits businesses wanting combined asset and invoice funding.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Facilities up to £5,000,000
- Rates from 5.5% to 13.5%
- Funding typically within 24 hours
Need to know
- Asset must meet lending criteria
- Deposit or valuation may be required
- Invoice finance expertise is a bonus
Expert take
Time Finance works well for established SMEs that value a relationship-led approach and may later bundle asset finance with invoice discounting, though pure chattel mortgage borrowers should confirm standalone terms.
Source:https://www.timefinance.com/
Admiral leasing
Published loan rangeFrom £1,000
Rate typeinterest 5.5% to 13.5%
Overview: Admiral leasing provides equipment leasing and chattel mortgage-style asset finance from as little as £1,000, serving UK businesses that need to fund essential assets quickly.
With funding possible in as little as four hours and rates from 5.5% to 13.5%, it is a practical choice for time-sensitive asset purchases where speed of completion is critical.
Best next step: Fast turnaround for urgent equipment purchases.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Funding from just £1,000
- Decisions in as little as 4 hours
- Rates from 5.5% to 13.5%
Need to know
- Asset eligibility criteria apply
- May require a deposit payment
- Best for straightforward asset types
Expert take
Admiral leasing earns its place for speed. A four-hour funding window is rare in chattel mortgage lending and suits businesses that cannot afford downtime while waiting for equipment finance approval.
Lloyds Bank
Published loan range£1,000 to £50,000
Rate typeinterest 10.65% to 11.2%
Overview: Lloyds Bank offers asset finance for UK businesses buying equipment and vehicles, with chattel mortgage facilities from £1,000 to £50,000 suited to smaller asset purchases.
As a high-street bank, it brings brand familiarity and the option to bundle asset finance with wider business banking, though underwriting may be more traditional than alternative lenders.
Best next step: Trusted bank option for smaller asset purchases.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Backed by a major UK bank
- Facilities from £1,000 to £50,000
- Can bundle with business banking
Need to know
- Rates from 10.65% to 11.2%
- Funding may take up to 48 hours
- Stricter bank underwriting applies
Expert take
Lloyds Bank suits established SMEs wanting the reassurance of a familiar lender for modest chattel mortgages. The trade-off is a more traditional application process and slightly longer funding timelines.
Barclays
Published loan range£1,000 to £25,000,000
Rate typeinterest 8.5% to 14.9%
Overview: Barclays provides chattel mortgage facilities spanning an exceptionally wide range from £1,000 to £25,000,000, covering everything from small equipment purchases to major fleet acquisitions.
Its asset finance sits alongside a full suite of business banking products, making it a convenient choice for UK limited companies wanting a single relationship for all funding needs.
Best next step: Versatile bank lender for any asset size.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Facilities from £1,000 to £25m
- Funding within 24 hours
- Full business banking available
Need to know
- Rates from 8.5% to 14.9%
- Bank underwriting standards apply
- Valuations needed on larger assets
Expert take
Barclays' sheer lending bandwidth makes it unique: a business can fund a single van or an entire production line under one chattel mortgage relationship, with the convenience of high-street banking behind it.
Acorn Business Finance
Published loan range£15,000 to £5,000,000
Rate typeinterest 8% to 15%
Overview: Acorn Business Finance is an independent specialist offering chattel mortgages from £15,000 to £5,000,000 for UK businesses purchasing equipment, vehicles and business-critical machinery.
It also supports acquisition finance and premium funding, making it a versatile partner for SMEs whose asset finance needs sit alongside wider growth or purchase strategies.
Best next step: Independent specialist for asset and acquisition funding.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Facilities from £15,000 to £5m
- Rates from 8% to 15%
- Supports acquisition finance too
Need to know
- Asset must be acceptable security
- Valuation and legal costs possible
- Affordability evidence may be required
Expert take
Acorn Business Finance suits SMEs that value an independent broker-led approach. Its crossover into acquisition finance helps businesses funding asset purchases as part of a larger growth plan.
Aldermore Asset finance
Published loan range£1,000 to £10,000,000
Rate typeinterest 5% to 15%
Overview: Aldermore Asset finance offers chattel mortgage facilities from £1,000 to £10,000,000, covering one of the broadest loan ranges in the UK asset finance market.
With rates from 5% to 15% and a strong track record in SME lending, it serves businesses at both ends of the spectrum, from sole traders buying tools to manufacturers upgrading production lines.
Best next step: Broad-range funding for almost any asset type.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Facilities from £1,000 to £10m
- Rates from 5% to 15%
- Strong SME lending heritage
Need to know
- Funding may take up to 48 hours
- Asset eligibility checks apply
- Larger deals need valuations
Expert take
Aldermore's breadth is its strength. Few chattel mortgage providers can serve a start-up joiner and a mid-market manufacturer equally well, making it a dependable all-rounder for asset-backed borrowing.
Source:https://www.aldermore.co.uk/business/business-finance/asset-finance/
Asset Finance Calculator
What is a chattel mortgage and how does it work for UK businesses?
A chattel mortgage is a type of asset finance where a lender advances funds to purchase a business asset, and the asset itself serves as security for the loan. The term 'chattel' refers to movable property such as vehicles, machinery, or equipment rather than land or buildings.
Unlike some other forms of asset finance, a chattel mortgage gives your business full ownership of the asset from day one. You appear as the legal owner on all paperwork. The lender registers a charge against the asset, which means they can repossess it if you default on repayments.
For UK SMEs and limited companies, this structure is particularly useful. You can claim capital allowances on the asset, including the Annual Investment Allowance where eligible. VAT-registered businesses can also reclaim the VAT on the purchase price upfront, rather than spreading it across the lease term.
Repayments are typically fixed monthly amounts over an agreed term, usually between one and seven years. Once the final payment is made, the lender removes their charge and the asset is yours outright.
Chattel mortgage vs hire purchase vs finance lease: what UK businesses should know
When comparing asset finance options, UK businesses often weigh up chattel mortgages against hire purchase (HP) and finance leases. Each structure treats ownership, VAT, and accounting differently.
| Feature | Chattel Mortgage | Hire Purchase | Finance Lease |
|---|---|---|---|
| Ownership | Immediate | At end of term | Never (lender owns) |
| VAT treatment | Reclaim upfront | Reclaim upfront | Paid on each rental |
| Balance sheet | Asset appears | Asset appears | Asset off balance sheet |
| Capital allowances | Claim directly | Claim at end | Not available |
Chattel mortgages suit businesses that want immediate ownership and the ability to claim capital allowances straight away. Hire purchase works similarly but delays legal ownership until the final instalment. A finance lease keeps the asset off your balance sheet, which some businesses prefer for accounting reasons, though you never own the asset. UK limited companies often favour chattel mortgages for high-value assets they intend to keep long term.
Which assets can UK businesses finance through a chattel mortgage?
Chattel mortgages are designed to finance movable business assets. The range is broad, covering most tangible items a UK SME or limited company might need to operate or grow.
Common asset types include:
- Commercial vehicles such as vans, HGVs, tipper trucks, and minibuses
- Plant and machinery including excavators, forklifts, and telehandlers
- Manufacturing equipment such as CNC machines, lathes, and production lines
- Agricultural machinery including tractors, combines, and sprayers
- Printing and packaging equipment for commercial print shops
- IT hardware and office equipment for professional services firms
- Specialist industry equipment such as catering units, fitness machines, and medical devices
Lenders typically prefer assets with a clear resale value and a long useful life. Standard assets like vehicles and mainstream plant machinery attract the most competitive rates. Most chattel mortgage providers will consider both new and used assets. Used assets usually require an independent valuation, and lenders may cap the finance term based on the asset's remaining economic life.
How to choose the right chattel mortgage provider for your UK business
Selecting a chattel mortgage provider is not just about finding the lowest rate. UK businesses should weigh several factors to find the right fit for their asset type and circumstances.
First, check whether the provider specialises in your asset class. Some lenders focus heavily on commercial vehicles, while others are more comfortable with manufacturing equipment or agricultural machinery. A provider familiar with your asset type can often offer better terms and faster decisions.
Second, compare the full cost. Look beyond the headline interest rate. Consider arrangement fees, documentation charges, and any early settlement penalties. Ask for the total amount payable over the full term.
Third, check the lender's flexibility around term length and deposit requirements. Some providers expect a deposit, while others may offer 100 per cent financing on certain asset types.
Finally, assess the provider's service and speed. How quickly can they issue a decision? Working through a broker can help match you with the most suitable chattel mortgage provider for your specific needs.
FAQs
A chattel mortgage is a type of asset finance where a lender advances funds to purchase a business asset such as a vehicle, piece of machinery or equipment, and the asset itself serves as security for the loan. The business owns the asset from day one, while the lender registers a charge over it. Once the loan is fully repaid, the charge is removed and the business retains clear ownership. Repayments are typically made in fixed monthly instalments over an agreed term.
Chattel mortgages are generally available to UK-registered limited companies, partnerships, and in some cases sole traders. Lenders typically assess the creditworthiness of the business, its trading history, and the value of the asset being financed. Most providers prefer businesses that have been trading for at least one to two years, though newer businesses may still be considered if they have strong financials or directors with good credit histories. The asset being purchased must have a clear resale value and serve as viable security.
Chattel mortgage terms usually range from one to seven years, depending on the expected useful life of the asset being financed. Repayments can be structured on a monthly, quarterly, or even seasonal basis to match your business cash flow. Interest rates vary by lender and depend on factors such as the credit profile of the business, the asset type, and the loan-to-value ratio. Some agreements may include a balloon payment at the end of the term to reduce ongoing monthly costs, though this means a larger final payment is due.
The key difference is ownership. With a chattel mortgage, the business owns the asset immediately, which means it can claim capital allowances and the asset appears on the balance sheet. With hire purchase, ownership only transfers after the final payment is made. Leasing typically involves renting the asset without ever owning it, and the asset remains off the balance sheet. Chattel mortgages can be more tax-efficient for businesses that want to claim writing-down allowances, though each business should seek independent tax advice before deciding.
When comparing chattel mortgage providers, look at the total cost of borrowing including arrangement fees and any early settlement charges. Consider the lender's experience in your industry and with the specific asset type you are financing. Check how quickly they can process applications and release funds, as speed can be critical for asset purchases. Also review their flexibility around repayment structures and whether they offer fixed or variable rates. Reading independent customer reviews and verifying their FCA registration is also important before committing.
Chattel mortgages can be used to finance a wide range of business assets including commercial vehicles, heavy plant machinery, manufacturing equipment, agricultural machinery, printing presses, medical equipment, and construction plant. Essentially, any movable business asset with a definable resale value can potentially be financed through a chattel mortgage. Some lenders also cover IT equipment, office fit-outs, and specialist trade equipment, though these typically have shorter finance terms due to faster depreciation rates.
