Are you searching for car finance and are new to the UK? You may be wondering what your chances are of getting approved for a car finance deal. If you’ve already read our car finance eligibility criteria, you may have seen that we ask you to have 3 years of address history in the UK before applying. However, depending on your situation, we may have some options for you. Find out more about getting car finance when you’ve recently moved to the UK.
Why does your living situation matter for car finance?
Many of the lenders on our panel ask for at least 3 years of living history in the UK. When applicants move around a lot, they are a higher risk to lend to as they are more likely to move again and not pay back their car on finance. Lenders tend to prefer to lend to people who have had the same address for a long period and have been in the UK for at least 3 years. Nothing is stopping you from applying for car finance as soon as you return to the UK or are here for the first time but in some situations, it can be best to wait until you have settled and have a permanent living address first.
Can you get car finance if you’re new to the UK?
If you’re new to the UK and haven’t lived here long, you may not have as many financing options as those who are a more permanent resident. However, it doesn’t mean it has to be the end of the road. We are a car finance broker which means we won’t lend you any money but instead, help introduce you to a lender who may wish to offer you finance. We help you find the most suitable lender for your situation and get the best rate possible. Using a broker like us means you could have a better chance of being approved because we can compare multiple lenders for you in an instant!
Can you get car finance for expats UK?
An expat is someone who moves abroad for a limited amount of time or is not sure how long they will be residing in the UK. It can be harder to get car finance as an expat because you may not stay in the UK for as long as your car finance duration. Car finance deals often last between 3-5 years so you must be living in the UK whilst paying back your loan. If you move around a lot it also makes you harder to trace. If the loan is secured against the car, the lender will need to know where the vehicle is being kept incase they need to remove the vehicle due to missed payments.
What documents do you need for finance?
Getting a car on finance isn’t solely about where you live and how long you’ve lived there for. There are other bits of information you will need to provide to meet the lender’s criteria. It’s also worth remembering each lender sets its own rules so you may not have to provide all of the following.
- Proof of license (either full or provisional)
- Proof of address – usually a council tax statement or utility bill will suffice.
- Proof of income – either by supplying at least 3 months’ worth of bank statements or payslips from your employer.
- Credit report – Most lenders will ask to see a copy of your credit report to show your creditworthiness.
How to get car finance when you’re new to the UK:
Consider a joint application.
Joint car finance is when two people apply for finance on the same car. You may be able to increase your chances of getting a car loan if you apply for finance with someone else. If you’re struggling to get approved because you’re new to the UK, the person you are applying with should have at least 3 years of address history in the UK.
Get a guarantor.
A guarantor loan may be an option if you’re new to the UK and want to get a car on finance. If you have a friend or family member who has lived in the UK for many years, you could ask them to be a guarantor for your loan. A guarantor is when someone agrees to pay your finances if you fail to do so. If you miss a payment, the payment will come out of your guarantor’s bank account.
Pay with cash.
It may not be the answer you were looking for but in some situations, it won’t be possible to get a car on finance if you’re very new to the UK. If this is the case and you find yourself being refused car finance regularly, you could instead choose to pay for a car with cash.
See how we could help you!
Whilst it can be harder to get approved for finance when you’re new to the UK, it doesn’t mean it’s impossible. We have helped people in a similar situation to you! Make a free, no-obligation application today and we’ll be in touch.