Refinancing? We can help.

Need to make a change now? You can apply to refinance your current car deal at any time. That said, it’s worth keeping in mind that some lenders will ask that you’ve had your existing loan for a set period (usually at least 12 months) before looking to switch things up.

Credit scores are affected by a whole host of different things, but refinancing will usually lower your score in the short-term. That’s because your new deal will be considered a new account on your credit report while also adding a new hard search and reducing the average age of your credit.
 
Don’t worry; this decrease should only be temporary. Once you start making your new loan repayments, your score will start to recover. In fact, if your new deal comes with more affordable repayments – and reduces the chances that you’ll miss a payment – refinancing could even improve your credit score over time.

There’s no limit to the number of times you can refinance a car, but that doesn’t necessarily mean you should be looking to switch to a new deal every year. You’ll likely face penalty charges for ending each agreement early and making a new finance application will temporarily impact your credit score by adding a new hard search to your file. If you choose to refinance with a longer loan term, you’ll also need to pay more in interest.

Bad credit scores can happen for a range of different reasons. There’s no judgement here; if you’ve missed payments in the past, you might still be able to refinance.
 
Your options may be more limited and you’re unlikely to have access to the lowest APRs, but there are lenders who specialise in bad credit car finance. You could switch to a loan with a longer term and lower repayments (paying more interest over time) or refinance your PCP balloon payment.

When applying to refinance your car, you’ll likely need to provide:

• Proof of identity – such as a driving licence or passport
• Proof of income – including bank statements or payslips
• Proof of address – such as a Council tax statement or utility bill
• Proof of insurance
• Proof of settlement figure amount
• Vehicle registration documents

One of the biggest reasons why you might be tempted to refinance your car is to reduce your monthly payments. Maybe you’ve had a change in circumstances, your expenses have gone up, or you’d just like to save a little more each month if you can.
 
If reduced monthly payments are your priority, you might be able to refinance with an extended loan term that spreads the cost of your finance over a longer time, although this will likely cost you more in interest overall.
 
You may also be able to lower your monthly payments if your credit score has improved since you signed your original loan agreement and you’re now eligible for a loan with a lower interest rate.

While most refinancing loans will be from a new lender, you might be able to refinance with your existing lender if they have an option that suits you and your current circumstances.