Documents you need for Car refinance Car finance (UK)

Headline - your complete UK checklist for refinancing

Be ready before you apply. The right paperwork can cut days off approval and secure better rates.

This guide shows exactly what UK lenders expect and how to submit it right first time.

What this guide covers in plain English

Car refinance replaces your existing car finance with a new deal, often to lower monthly payments, reduce interest, or change term. In the UK, lenders follow strict ID, affordability, and vehicle checks. Having the correct documents - and high quality digital copies - is often the difference between a same-day decision and a stalled application. Whether you are employed, self-employed, or rebuilding credit, preparation is your advantage.

Who benefits from this checklist

If you live in England, Wales, Scotland, or Northern Ireland and want to refinance a car you already drive, this is for you. It is especially useful if you want to reduce monthly costs, tidy up a balloon payment, or switch from a higher rate. Self-employed drivers and applicants with previous credit blips will find tailored guidance on proofs lenders typically request in the UK market.

Key terms you will see in the process

• V5C logbook: The DVLA vehicle registration document that confirms you are the registered keeper. Most lenders will not proceed without it in your name.
• Affordability check: Assessment of your income and outgoings under FCA rules to confirm you can meet repayments. In practice, this involves recent payslips and bank statements, or SA302s and accounts if self-employed.
• Soft search and hard search: A soft credit check does not affect your score and is often used for initial quotes. A hard search is recorded on your file when you proceed.
• Early settlement figure: The amount needed to clear your current agreement, including any settlement interest or fees. Your new lender needs this to pay off the old finance.
• Loan-to-value (LTV): The loan amount as a percentage of the car’s value. Many lenders cap LTV around 125 percent for refinance.
• Provisional vs full licence: Most lenders prefer a full UK licence. Some accept provisional, but expect tighter criteria.

Understanding APR is not just about percentages - it is about what you really pay over time. Documents prove the numbers that drive your rate.

The documents lenders usually ask for

Below is a quick comparison to help you prepare the right proofs first time.

What choices you have when refinancing

• Rate type: Fixed rate is standard for car refinance in the UK, giving predictable payments. Variable is uncommon. Focus on APR rather than monthly payment alone.
• Term length: Extending the term can cut monthly cost but may increase total interest. Shortening the term can reduce interest paid if affordable.
• Settlement timing: Some lenders can request your early settlement figure directly. Others need you to supply it. If your current lender charges early settlement fees, factor them into the comparison.
• Vehicle eligibility: Many lenders limit refinance to cars under 10 years old and under 100,000 miles. Modified, commercial, or imported vehicles are often excluded.
• Application route: Most providers now support digital document upload. If your case is complex - self-employed, thin credit file, or recent credit events - a broker may help place your application with the right lender first time.

Do not chase the lowest monthly number without checking total cost. APR and term together tell the true price.

Costs, impact, and real-world risks

• Fees: You may face an arrangement fee or broker fee. Early settlement fees from your current agreement can apply. Always calculate the break-even point.
• Interest: A stronger credit profile can unlock lower APR. Conversely, missing documents or unclear income can push you towards higher-cost options.
• Credit score impact: Expect a soft search for quoting, then a hard search if you proceed. Too many hard searches in a short period can weigh on your score.
• Insurance and MOT: Missing or expired documents can halt payout. Keep your MOT current if the car is over three years old.
• Resale and depreciation: Extending the term on an older or high-mileage car could leave you owing more than the vehicle is worth. Check LTV limits and car value.

Who qualifies and what lenders look for

• Identity and address: UK licence or passport plus recent proof of address. Some lenders request both if your licence does not show your current address. Address history of three years is typical.
• Income and stability: Employed applicants usually provide three months’ payslips and bank statements. Self-employed applicants often need two years of accounts, SA302s, and business bank statements.
• Vehicle criteria: Common cut-offs are under 10 years old and under 100,000 miles. Imported or heavily modified cars may not qualify.
• Licence type: Full UK licence preferred. Some lenders accept provisional, but policy varies.
• Credit history: Clean histories tend to secure lower rates. If you have adverse credit, expect closer scrutiny and possibly requests for extra bank statements or explanations of past issues.

The refinance process made simple

1. Check eligibility criteria and vehicle limits
2. Gather ID, address, income, and V5C documents
3. Get your settlement figure from your current lender
4. Compare APR, term, fees, and total payable
5. Complete application and give credit check consent
6. Upload clear digital copies of all documents
7. Lender verifies and pays off existing finance
8. Start repayments under your new agreement

Weighing up the advantages and drawbacks

Pros:

• Potentially lower APR and monthly payments
• Option to shorten term and reduce total interest
• Consolidation of balloon or residual balances
• Digital submissions speed up decisions

Cons:

• Early settlement fees can reduce savings
• Longer terms may increase total cost
• Hard credit searches affect your file
• Older or high-mileage cars may be excluded

Avoid common blockers before you apply

• Make sure your driving licence and address proofs are current and legible. If your licence has an old address, include a recent utility bill or bank statement.
• Line up three months’ payslips and matching bank statements. Self-employed should prepare SA302s and two years’ accounts.
• Have your V5C logbook in your name. If you have moved house, update details with DVLA.
• Scan or photograph documents clearly. Avoid cropped edges, glare, or blurred images.
• Request the settlement figure early to avoid delays and to validate the numbers in your offer.

If refinance is not the right fit

• Renegotiate with your current lender: Ask about rate reviews or term adjustments.
• Part-exchange or sell: Use proceeds to clear finance if allowed, then finance a different vehicle.
• Overpayment: If permitted without penalty, small overpayments can cut interest without switching.
• Personal loan: Can be competitive for strong credit profiles, but ensure the APR and term make sense against refinance options.

Frequently asked questions

• Do I need a V5C logbook to refinance? Yes. It proves you are the registered keeper. Most lenders will not proceed without it.
• Will a provisional licence be accepted? Some lenders may accept it, but most prefer a full UK licence. Check policy before applying.
• How many months of income proof are needed? Typically three months’ payslips with matching bank statements for employed applicants. Self-employed applicants usually need SA302s and two years’ accounts.
• Will refinancing hurt my credit score? A soft search is common for quotes. A hard search happens if you proceed and will show on your file. Multiple hard searches in a short time can have an impact.
• Can I refinance an older or high-mileage car? Many lenders set limits around 10 years and 100,000 miles. Criteria vary, so check before you apply.
• Are insurance and MOT required? Some lenders ask for proof of insurance and a valid MOT if the car is over three years old. Keep both up to date.

Ready to move forward

• Gather your ID, address proof, income evidence, and V5C now.
• Get your settlement figure and compare APR, term, and fees across lenders.
• Upload clear, complete documents to speed verification. If self-employed or non-standard, consider a broker to place your application effectively.

Important information

This article provides general guidance for UK consumers and is not personal advice. Lender criteria vary. Always check documentation requirements and costs with your chosen provider before applying. Your vehicle may be repossessed if you do not keep up repayments.