Help & Advice

I have mortgage arrears. Can i still get car finance?

I had mortgage arrears that affected my credit score badly. Now the arrears are clean and I need a new car, and want to rebuild my credit history - without applying to too many companies, can you help?

Mohammad


Answer

Hi Mohammed. Lenders like to see intent to pay back any arrears or defaults, so the fact that you've brought your mortgage payments back up to date should mean we will be able to get you approved for car finance - although you won't qualify for the best rates as you'll be seen as a higher risk. How long have you been a home-owner for and how much are you looking to borrow? We have many lenders who help people with bad credit car finance. Please apply now and i'll see what we can do. Best regards, Rachel

Answer correct as of September 2016

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Hitatchi

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender

More related questions

After a recent split with my wife she left me with mortgage arrears which i have an agreement to clear with the lender. She has also left me with a poor/bad credit rating. Do i have any hope in being approved for a car loan? I am full time employed earning £1700 pm. Thanks

Answer

Hi Christopher, yes - there is a chance that we can get you approved for car finance as we do have lenders who help those with arrears. However, the rate of interest you receive will be between 12% and 20% depending upon which lender approves you. We can't guarantee an acceptance but we'll certainly try our best. Do you have a part ex or deposit to place into the deal? Kind Regards, Rachel

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Hello, I've had 5 new cars over 20 years and have never defaulted on any payments. I have only two payments left on my current car but I went to Renault and was declined. I do have other arrears on other things.

Answer

Hi Janice, the other arrears on your other active credit accounts will be causing you the problem. We help customers who have arrears secure finance so please apply on our site when you get 5 minutes. Do you have a deposit and how much are you looking for?

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Rachel Wilson, Underwriting manager

Asset 1 Just get in touch,

we'll try to help Asset 2

Rachel Wilson, Underwriting Manager

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Hitatchi

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender