This page is intended as a guide to logbook loans, with helpful information about what they are, usual interest rates, types of vehicles that qualify and other information
Logbook Loans? What are they?
A logbook loan is a financial arrangement that is intended to be a short term loan that is secured against your vehicle. They are becoming more popular & mainstream in the United Kingdom.
How Can I apply For A Logbook Loan?
There are websites all over the internet that can help you get a loan of this nature, you can apply for a logbook loan at the homepage here and you will be matched against a number of carefully selected logbook loans lenders in order to maximise the chances of you getting a loan by sending you out to lenders with a broad criteria.
Alternatively you can look in your local directory service for a phone number to call to chat to a representative about getting the quick cash you are seeking.
How Likely Am I To Successfully Get A Logbook Loan?
This depends on whether or not you fit the criteria, these primary criteria are as follows:
- The car needs to be 10 years old or younger, this is due to the fact that older vehicles can deteriorate which affects the terms on the loan agreement (because the car is used as security for the finance) also, many older vehicles have not been fitted with the latest in safety measures, increasing the risk on the loan.
- There can be no existing finance arrangement on the vehicle, this is because if you have outstanding finance attached to a vehicle, then you cannot put this forward as security for the loan because you do not fully own the vehicle.
- You must be a United Kingdom Resident, because the vehicle must be under UK legal jurisdiction for this to be put forward as security for the loan
- You must be the legal owner of the vehicle, because you must own the vehicle if you wish to put the vehicle forward as security.
How Much Cash Can I Borrow?
Usual loan amounts can be anything from £50-£50,000, however this will need to be proportionate to the value of your vehicle, this is because with a loan of this nature, you will only be allowed to borrow what can be secured in your vehicles’ value as this is a required pre-requisite for the finance right from the beginning.
What Are The Usual Repayment Periods’?
With many logbook loans, it is possible to get agreements in place for up to 4 years, the available repayment period will be influenced by the amount of money you wish to borrow larger loans will have longer repayment periods made available to them. The minimum repayment periods’ are usually 2-3 months.