Skip to main content
Glite Dictionary
chattel mortgage

chattel mortgage

9.5
A loan in which the lender can take your property, like a car or machine, if you do not repay
  • noun
  • /ˈʧætəl ˈmɔrɡɪdʒ/
  • UK
translation icon : hipoteca mobiliaria
  • In a chattel mortgage agreement, the lender can repossess the property if the borrower defaults on the loan.

Examples

  • A chattel mortgage allowed them to use their furniture as security for the loan.

  • The bank offered a chattel mortgage, enabling the couple to borrow money against their personal belongings.

  • One actor, it seems certain, was the institution of the chattel mortgage.

    Academic text (2003)

Surface Forms

chattel mortgage singular
chattel mortgages plural

Morphology

chattel + mortgage

The compound is directly compositional: 'chattel' (movable personal property) + 'mortgage' (a loan secured by property) yields a mortgage secured by movable goods. Although the term is legal/register-specific, a B1 learner who knows both constituent meanings can reasonably infer the MWE's sense.

Etymology

Chattel mortgage comes from old law: chattel meant movable things like a cow, cart or machine, and mortgage meant a loan tied to property. Imagine giving a tractor as a promise; if you do not pay, the lender can take that item, so the phrase means a loan where personal property is used as 'security'.