Car Loans FAQs

We know that not everyone gets the best deal from their bank. That’s why we’ve chosen to do things differently.

Can a car loan build your credit score and credit rating?

A credit score is a tool used by lenders to help determine whether you qualify for credit. Using the information on your credit report and any additional information you supplied as part of your application, lenders use a mathematical model to calculate a score that represents your credit history. 

What are car loans rates?

Car loan rates refer to either the interest rate or Annual Percentage Rate. This applies to the amount that a lender will charge for a loan to finance the purchase of a car.

What is a car loan APR?

An APR (Annual Percentage Rate) is a calculation that takes into account the interest rate of a loan and any other additional fees a lender may charge to repay the loan. A car loan APR is the rate you pay that accounts for the interest charged plus all other fees you have to pay to get your loan.

Will a car loan affect my mortgage or getting a new mortgage?

A car loan will not affect your current mortgage repayment but will be an additional monthly commitment to make. Before taking a loan, you should ensure you are comfortable that you can afford the repayments for both your mortgage and the loan. 

Is a car loan the same as car finance?

A car loan is a type of car finance. A car loan is essentially a personal loan. There are many other types of car finance including Personal Contract Purchase (PCP), Hire Purchase (HP) and leasing.

What’s the difference between a soft credit check and a hard credit check?

A soft credit check lets loan providers look at your credit report without leaving a footprint visible to other lenders, although you can still see them. It also means the search has no impact on your credit history. A hard credit check will leave a footprint visible to other lenders and may impact in your credit history.

 

Can car loan interest be claimed on taxes?

For tax advice please contact HMRC or a qualified accountant.

Can you buy second-hand cars with a car loan?

A car loan is essentially a personal loan and at Shawbrook, you could use it to buy a second-hand car.

 

Do you do guarantor car loans?

No, Shawbrook do not provide guarantor car loans.

Can I transfer my existing car finance arrangements into a new agreement with you?

A Shawbrook car loan is essentially a personal loan which can be used to pay off other loans or finance, but we do not accept transfer of existing finance arrangements.

Do you offer car loans for motorbikes and other types of vehicles?

A Shawbrook car loan is essentially a personal loan. It could be used to finance the sale of a motorbike or other types of vehicles.

Is car insurance included as part of your car loan?

No, car insurance is not included as part of your car loan with Shawbrook.

What if I want to change my car before the end of the car loan?

If you want to change your car before the end of the car loan, you will need to continue to repay your loan as per the terms of the agreement.

Do you have a car loan calculator I can use?

No, we do not have a loan calculator at Shawbrook as we don't believe it is a fair representation of the rate you may receive. 

How are your car loans approved?

If you apply for a Shawbrook car loan, we look at the information provided in your application and we will only lend to you if we are comfortable that you can afford the loan. Then we'll let you know if you would be approved before you apply.

How are your car loans and loan interest calculated?

When you apply for a Shawbrook car loan, we will use a credit score to help make a decision on whether to lend the money or not and assess whether you can afford the loan. Your score will be based on information from credit reference agencies. 

How much car loan can I afford?

When you apply for a Shawbrook car loan, we look at the details you provided as part of your application and your financial history supplied by credit reference agencies. Based on this information, we’ll only lend to you an amount we are comfortable that you can afford.

How much car loan can I borrow?

We offer loans from £1,000 to £35,000. The loan amount you can borrow will depend on your personal circumstances.

Do I need to be in regular employment to get a car loan?

You do not need to be in regular employment to get a car loan, but you need to have an annual income of at least £15,000 to be considered for a loan.

How old do I have to be to get a car loan?

To qualify for a Shawbrook loan you will need to be between 21-75 years of age.

Can I get a car loan if I have only just arrived in the UK?

You need to have been a UK resident for a minimum of 3 years to qualify for a Shawbrook car loan.

Can I take out a joint car loan?

Yes, we offer car loans for joint applicants.

How long does a standard car loan last?

The time your car loan will last is dependent upon the term you have chosen. At Shawbrook, loan terms available are from 1 to 7 years and is depending on the amount you wish to borrow.

Aside from APR are there any other hidden costs I need to know before taking out a car loan?

At Shawbrook, there are no hidden costs or arrangement fees included in taking out a car loan. Please note, an early redemption fee may be charged if you wish to repay your loan early.

What is your lending criteria?

At Shawbrook we look at every customer individually, but we do have some basic criteria which you’ll have to satisfy before we can consider your application. You must:

  • Be aged 21 to 75
  • Have been a UK resident for at least three years
  • Have an annual income of at least £15,000
  • Have a personal bank account in the UK

What paperwork will I need to complete?

To apply for a Shawbrook personal loan you will need to complete an online application form. If you have been accepted for the loan, we will send you a loan agreement to sign electronically.

Are your car loans fixed or on a variable rate?

A Shawbrook car loan is based on a fixed rate of interest over the term of your loan.

Do your car loans get paid in instalments?

Shawbrook car loans should be paid in monthly instalments.

Are car loans classed as secured or unsecured loans?

A Shawbrook car loan is classed as an unsecured personal loan.

Are car loans classed as tax deductible?

For tax advice please contact the HMRC or a qualified accountant.

Can a car loan be cancelled?

You have the right to cancel/withdraw from your loan agreement within 14 days from the date you receive the funds. You will then have 30 days to repay the funds to Shawbrook.

If I’ve been declined a loan, can I reapply?

Yes, if you have been declined you could reapply, but we would advise you find out why you have been declined by contacting the named credit reference agencies before you reapply to avoid being declined again.

Can a car loan be paid with a credit card?

All Shawbrook car loans are to be paid by direct debit and cannot be paid by credit card.

Can a car loan be transferred to someone else?

A Shawbrook car loan cannot be transferred to another person. Once you have signed the loan agreement we will only transfer the funds to your designated bank account referenced in the loan agreement and you will be responsible for the repayments.

Can car loans be paid off early?

You can repay all or part of the outstanding balance of your loan at any time. Please note that an early redemption fee may be charged. If you can't repay your car loan, please contact us immediately on 0345 650 6290.

What if I can’t repay my car loan?

If you can't repay your car loan, please contact us immediately on 0345 650 6290.

Can a car loan be transferred to another bank?

Once you have been approved for a Shawbrook car loan, the funds will be transferred into your bank account. We will only transfer the loan amount to your designated bank account.

Can I settle my car loan before the end of the agreement?

You can repay all or part of the outstanding balance of your loan at any time. Please note that an early redemption fee may be charged. If you can't repay your car loan, please contact us immediately on 0345 650 6290.

Can I take a payment holiday?

We do not offer payment holidays for Shawbrook personal loans.

Who can I speak to if I have a question about my car loan?

For enquiries regarding car loans for existing customers, please call 0345 650 6290.