Can I get car finance if I've just moved to the UK?

If you’re new to the UK, or if you’ve moved back after being away for a while, you might be keen to get behind the wheel. 

It may not be easy to get a car finance deal, as most lenders ask for at least three years’ address history in the UK. But that doesn’t mean it’s the end of the road, as there are specialist lenders and alternative options to explore that could help you take to the road.

How long do I need to have lived in the UK to get a loan with Carmoola?

Carmoola will accept applications from customers who have been in the UK less than 3 years. However, we will need to see proof of income and also a strong credit history, which is often the difficult part as it can take a while to build up your credit profile when you arrive in the UK.

To be eligible for a loan with Carmoola you need to be a UK resident now, and plan to live here throughout the duration of your agreement with us. The best way to find out if you'll get approved is to start an application. This takes a couple of minutes and won’t have any impact on your credit profile to see if you’re approved.

How can I apply for car finance?

You’d usually apply for car finance online. You need to provide:

• Your personal information, like your full name, date of birth, and marital status
• Your current address, and three years’ address history
• Your employment status
• Your monthly income

You’ll also need to provide some documents as part of your application, such as:

• Your driving licence
• Proof of your identity, like your passport or UK or EU driving licence
• Proof of your address, like a utility bill or a Council Tax statement
• Proof of your income, like recent bank statements or payslips
• Proof of your residency or visa status, if this applies to you

What do lenders check?

When you apply for car finance, the lender has to make sure that the finance they offer is right for you, and that you’ll be able to make all your payments on time. They do this so they can work out how much of a risk it might be to lend to you. 

The lender will ask about your income and regular expenses, so they can work out how much disposable income you have, and whether you can afford the repayments on a car finance agreement. They’ll also carry out a soft credit check, to see your track record of managing your finances. 

Lenders will check your address history as part of their risk assessment too. If you have at least three years’ address history, this helps to reassure lenders that you’ve been a UK resident for a while, and you’re not likely to leave halfway through your agreement.

Can I get car finance without a credit history?

When you move to the UK, you unfortunately can’t bring your credit history with you - even if you had a perfect track record in the past, you’ll have to start from scratch when you arrive in the UK.

If you don’t need a car straight away, or if you can pay for it outright in cash, you may be better off taking some time to build your credit before applying for car finance. But if you don’t have time to wait, then it’s not impossible to get car finance with little or no credit history, although it can be more difficult. Every lender has their own eligibility criteria, and there are lenders on the market that specialise in car finance for people with less-than-ideal credit. 

How long do I have to have been in the UK to apply?

If you’ve just arrived in the UK, or just moved back after some time living abroad, you’ll need to wait a while before getting car finance. Most lenders won’t offer finance to people who have lived in the UK for less than three years.

There are specialist lenders out there who might be able to offer you a car finance agreement if you’ve been in the UK for less than three years.

What other options do I have if I can’t get car finance yet?

If you don’t have at least three years’ address history in the UK yet, or if you’ve been refused car finance for another reason, don’t panic. There are other ways to get behind the wheel.

Pay in cash

If you have enough money to pay for your car in cash, or if you can save up over time, then this is the cheapest way to get a new set of wheels. It doesn’t need a credit check or address history, but you’ll still need to have a UK address to register the car.

Joint or guarantor finance

If you have a family member or partner who has been resident in the UK for several years and has a good credit score, you could team up with them to get a car finance deal. With joint finance, you’ll both co-sign the loan, and will both be responsible for making the monthly repayments. With guarantor finance, someone with a good credit score acts as a guarantor, which means they’ll step in and cover your repayments if you can't make them.