Aircraft Finance Rates 2026 — Updated October 2026
- Full market range — bespoke per asset
- 5.5%–12%+ APRFull market range — bespoke per asset
- New aircraft, prime borrower
- From 5.5% APRNew aircraft, prime borrower
- Required for UK-based aircraft finance
- CAA registrationRequired for UK-based aircraft finance
- Last updated
- October 2026Last updated
Aircraft finance rates in 2026 range from 5.5% APR for new, prime aircraft with a strong borrower to 12%+ APR for large or aged aircraft, complex international structures, or weaker borrower profiles. Finance is highly bespoke — every transaction is priced individually. Sub-5.5% pricing is generally only available through manufacturer finance schemes, which are not broker-accessible products. Aircraft finance is more specialised than most asset finance — the aircraft registry (UK CAA or overseas registry), age, maintenance status, and the aircraft's marketability all affect the lender's risk assessment and rate. This guide covers all aircraft types from light aircraft to private jets.
Aircraft Finance Rates by Aircraft Type — October 2026
Swipe the table sideways to see every column.
| Aircraft type | Rate range (APR) | Max LTV | Notes |
|---|---|---|---|
| Private jet (post-2010, cabin jets) | 7.0%–9.0% | Up to 65% | Cessna Citation, Bombardier Challenger, Embraer Phenom range. Strong market liquidity. |
| Private jet (pre-2010) | 8.0%–12.0%+ | Up to 55%–60% | Older aircraft — residual value assessment more conservative. Narrower lender pool. |
| Turboprop (King Air, PC-12) | 6.0%–9.0% | Up to 60%–65% | Strong workhorse market. Beechcraft King Air, Pilatus PC-12 well-understood by lenders. |
| Light aircraft (single and twin-engine) | 5.5%–7.5% | Up to 50%–60% | New Cessna, Piper, Beechcraft piston aircraft with a strong borrower sit at the sharp end of the broker-accessed market. Aged or high-hours airframes price materially higher. |
| Helicopters | 6.5%–9.5% | Up to 55%–60% | EC135, AW109, Bell 407 range. Maintenance-intensive — lenders assess maintenance records carefully. |
| Military/ex-military aircraft | 8.0%–14.0%+ | Up to 40%–50% | Very specialist. Parts availability and maintenance history critical. |
What determines your rate
Aircraft age and specification
Newer aircraft with established maintenance records and active type certificates are most fundable at the best rates. Pre-2000 aircraft, out-of-production types, or aircraft requiring major maintenance face a conservative assessment and higher rates or declines from mainstream aircraft finance lenders.
Registration
Aircraft finance in the UK is most straightforward for UK CAA-registered aircraft. Overseas-registered aircraft (FAA N-registered, for example) can be financed but require specialist structures. The registration affects the lender's enforcement position and the legal complexity of the security.
Security structure
Aircraft finance typically uses the aircraft as security (aircraft charge, registered at UK CAA or the relevant authority). Some lenders require a personal guarantee alongside the aircraft security. The quality of the aircraft as security — its marketability and assessed residual value — directly affects rate.
Maintenance status
An aircraft with a current Certificate of Airworthiness, current maintenance programme, and up-to-date logbooks is substantially more fundable than one with maintenance deferred or certificate lapses. Lenders assess maintenance history as part of the underwriting.
Borrower purpose
Commercial use aircraft (charter, air taxi) are assessed differently from private use. Commercial aircraft require AOC (Air Operator Certificate) compliance as part of the operating structure. Private use aircraft have simpler underwriting.
Worked cost example
- Rate
- 7.5% APR (private jet, post-2010, strong market)
- Monthly payment (HP, capital + interest)
- £16,564/month
- Total interest over 7 years
- £311,359
- Total repayable
- £1,391,359
- Arrangement fee (1.5%)
- £16,200
- Total cost of finance
- £327,559 over 7 years
Scenario: 2018 Cessna Citation CJ3+. Purchase price: £1,800,000. Finance: £1,080,000 (60% LTV). 7-year term.
At 9.0% APR (older aircraft, less favourable lender): monthly £17,376. Total interest: £379,584.
Additional cost of 9% vs 7.5% rate over 7 years: £68,225 — making rate comparison critical for aviation finance.
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Rate context and outlook
Bank Rate is 3.75% after the 17 September hold. Variable business facilities (revolving credit, invoice finance) move only with Bank Rate.
Fixed-rate hire purchase and leases are funded against swap rates, so some funders may nudge fixed pricing up after the September swap move. Quotes are typically held for 30 days.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
Frequently asked questions
What types of aircraft can be financed in the UK?
Virtually all aircraft types can be financed through specialist lenders — light single-engine aircraft, twins, turboprops, business jets, helicopters, and commercial aircraft. The rate, LTV, and available lender pool vary by aircraft type, age, and specification. The most straightforward to finance are well-maintained, post-2010 aircraft from established manufacturers (Cessna, Beechcraft, Bombardier, Embraer) with strong resale markets.
Can I finance an aircraft purchase at auction?
Yes — aircraft sold at specialist aviation auctions can be financed. The timeline is typically tighter than a private treaty purchase. We recommend getting an agreement in principle in place before the auction if finance is needed. Aircraft auctions are less common than property auctions — allow additional time for the aircraft specialist valuation required by lenders.
What documentation do lenders require for aircraft finance?
Typically: Certificate of Airworthiness (current), aircraft maintenance records and logbooks, most recent engineer's inspection report, hull insurance in place, UK CAA (or relevant) registration documents, proof of EASA Part-145 approved maintenance organisation, and the borrower's standard finance documentation (income, accounts, credit).
Can I finance an aircraft through a limited company?
Yes — corporate aircraft finance (through a UK Ltd or LLP) is common for business use aircraft. The finance is taken in the company name with personal guarantee from directors. VAT recovery on business aircraft is complex — take specific advice from a VAT specialist before structuring.
What is the minimum deposit for aircraft finance?
Most aircraft finance lenders require a minimum deposit of 35%–40% (60%–65% LTV). For older aircraft or less liquid types, lenders may require 40%–50% deposit. For prime modern business jets with strong market demand, some lenders can consider 30%–35% deposit at slightly higher rates.
Can a new business get finance?
Yes, though many funders want 1–2 years of trading or a larger deposit; directors' personal credit matters more for young businesses.
Is VAT charged on hire purchase?
On HP, VAT is paid upfront with the deposit and can usually be reclaimed; on leases it is added to each rental.
What is a balloon payment?
A larger final payment that lowers the monthly cost; you pay it, refinance it or return the asset, depending on the product.
Do I need to put down a deposit?
Usually 0%–20%, depending on the asset, its age and your trading history.
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Independent whole-of-market advice · FCA No. 814533