To be approved for car finance, most lenders will require you to have at least three years’ address history in the UK. You can provide proof of your address by supplying copies of your recent utility bills, your Council Tax statement, or your Tenancy Agreement if you rent. These documents will usually need to include your full name and address.
How many years of address history do you need for car finance?
Most car finance lenders will require you to have lived in the UK for at least three years before you can qualify for a loan. That means if you’ve just immigrated, it can be more difficult for you to find a loan. It’s also very unlikely that you’ll be able to qualify for car finance if you’re not a resident of the UK at all.
The reason behind this rule? Traceability. Lenders need to trust that you’ve settled in the country and, if you fall behind with your repayments, they can still find you and take you to court in the UK if necessary (don’t panic, that’s the worst-case scenario!)
What documents can I use as proof of address for car finance?
Different lenders can have different rules when it comes to documentation, but most will accept the following as proof of address:
- A recent utility bill (no older than three months)
- Your current Tenancy Agreement
- Your most recent Council Tax statement
Keep in mind that out-of-date documents can be rejected and cause delays. If you want to save time (and get a gold star in efficiency) request the latest copy of your electricity bill from your provider, for example, before you submit your car finance application.
The rules apply to everyone; no matter how long you’ve been in the UK and what your credit score looks like, you’ll need to provide proof of address.
Can I get car finance if I’ve just moved to the UK?
So, you don’t have three years’ address history in the UK – what next? The good news is that there are some lenders that will be willing to consider an application from someone who has been in the UK for at least a year but not yet crossed that all-important three-year threshold.
But it’s not just about where you live. Unfortunately, your credit score is one thing you can’t pack in your suitcase when you move to the UK. Instead, you’ll be starting from scratch and will likely need to build up a credit history over time before you can qualify for a car loan on your own. Of course, on the other hand, if you’ve had a patchy payment history in the past, congratulations, you now have a clean slate!