Why Refinance a Helicopter?
There are several good reasons to consider refinancing a helicopter you own or have financed. Rates in the aviation finance market change over time, and a facility arranged several years ago may no longer represent the best available rate for your circumstances. Equally, if your helicopter has appreciated in value, refinancing can release cash for other purposes - a new aircraft purchase, hangar investment, business working capital or personal use - without requiring you to sell the asset.
Helicopter refinance is also used to restructure the debt profile on an existing finance agreement. If your current monthly payments are uncomfortably high, refinancing over a longer term with a different lender may reduce the monthly burden - though it will increase the total interest paid over the life of the facility. A broker can model these scenarios and help you make an informed decision.
Finally, operators who purchased a helicopter on bridging or short-term finance - perhaps during a conversion from N-reg to G-reg - will typically want to refinance onto a long-term, lower-rate facility once the aircraft is fully established on the UK register.
| Finance Type | Typical Rate | Typical LTV | Typical Term |
|---|---|---|---|
| Equity Release (outright owner) | 6.5% – 8.5% | Up to 80% | 3–10 years |
| Rate Improvement Refinance | 6.5% – 8.5% | Up to 80% | 3–10 years |
| Term Extension Refinance | 7.0% – 9.0% | Up to 75% | Up to 12 years |
| Post-Conversion Refinance | 6.5% – 8.5% | Up to 80% | 3–10 years |
What You Need for a Helicopter Refinance
Aircraft Valuation
An independent aviation surveyor will value the helicopter at current market rates. Lenders use this valuation to determine the maximum loan amount available. We can recommend approved surveyors with experience in your aircraft type.
Maintenance Records
Full and up-to-date technical records - including the Tech Log, airframe logbook, engine logbook and Certificate of Airworthiness - are required by lenders as part of their due diligence on the asset.
Proof of Ownership
You will need to demonstrate clear legal title to the aircraft, typically via the CAA register entry. If there is an existing finance agreement, its settlement figure will need to be known as it will be repaid from the refinance proceeds.
Financial Information
Personal or business financial statements, tax returns and bank statements are typically required by lenders to assess your ability to service the refinance facility. The stronger your financial profile, the better the rate available.