Logbook loans are becoming a very popular way to lend money in the United Kingdom, especially over the past five years. Many people are turning to them as a way to get cash, especially in times of emergency.
But how exactly do these loans work? What do they entail?
How it all works
If you have a car, a motorbike, a caravan or truck, you could be eligible for a logbook loan. Your vehicle has value, and a logbook loan sees you given money against that value. During the duration of the loan, your car acts as security for the loan. This means the lender keeps your vehicle logbook or V5 document.
Effectively, they own the vehicle for the duration of the loan. This protects them should a payment (or multiple payments) be missed. They then have a legal right to sell the vehicle to recoup any costs. If any extra money is made during the sale, it will be given back to the vehicle’s original owner.
How much can be borrowed with a logbook loan?
We offer logbook loans from £500 to £50 000. Of course, the amount that you qualify will depend on a few things.
- The overall condition of your motor vehicle
- The mileage of your motor vehicle
- The value we give to your motor vehicle
Once our assessors have had a look at your vehicle, we will assign a value to it. We then will give you a loan up to 50% of this value while you continue to use it on a daily basis.
What documents does a loan applicant need?
When applying for a logbook loan, you will need to bring a number of documents to complete your application. These include:
- Proof of address (a utility bill will suffice)
- Proof of income (your previous three months wage slips)
- Bank statements (for the previous three months, or if you are self-employed, then six months)
- The log book or V5 document for your vehicle
- The MOT certificate for your vehicle
- Proof of comprehensive insurance
Your vehicle must be comprehensively insured. This again helps to protect our investment against accidents, weather damage, and other eventualities. More importantly, you must own the vehicle and it must be fully paid off. It cannot be owned by a spouse, sibling or parent.
So if you are needing cash in a hurry and you have a fully paid off, comprehensively insured vehicle, apply here now .