How do logbook loans work?
Basically, logbook loans provide UK individuals with a poor credit rating but who own a car avail a loan by using their cars as collateral. In essence, a person is able to sign off their car in exchange for a given amount of money determined by the value of their car or the income they receive on a monthly basis.
Can I apply if I am residing in UK only for a temporary period of time?
No. Our logbook loans are for specifically For UK citizens who work and live in the UK. What this essentially means is that only bonafide UK citizens can apply and get approved for a UK logbook loan. Visitors who’ve just come to the UK for pleasure or business cannot be considered for a UK logbook loan.
What are my chances of being approved for a logbook loan considering that I have a negative entries such as CCJs?
If you have past negative reports such as defaults or CCJs, you need not worry about your chances of being accepted for a logbook loan. This is because the state of your credit rating has no bearing or rather does not determine whether you get approved for a logbook loan or not. We can therefore state without any fear of contradiction that you have very high chances of getting approved for a logbook loan provided that you meet the basic requirements.
Can I use a friend’s or even my spouse’s car as collateral to apply?
In order for us to consider you for a logbook loan, the car you produce as collateral needs to be registered in your own name. In other words, you must be the legal owner of the car or motorcycle you wish to set up as collateral. Any car that belongs to your friend, colleague at work or even your extended family cannot be accepted as collateral.
What is the standard period for repaying a logbook loan?
Ordinarily, once you take out a logbook loan, you have up to say 36 weeks to repay your loan. You can choose to either make weekly repayments, bi-weekly repayments or monthly repayments based on what you are comfortable with.
What are the ramifications of defaulting on logbook loans?
Like any other financial product, defaulting on logbook loans means that you are at risk of further worsening your credit score status. That aside, the worst thing you should worry about when you fall back in repayments for a couple of months is of course losing your car. While we try to work out something with you and give you sufficient time to repay your loan, car repossession is usually a measure of last resort.
Is it a must that I be in possession of a car to be considered for a logbook loan?
The assumption out there is that only individuals who own a car can apply for a logbook loan. However, this is not true. UK individuals who own a motorcycle, a van, a truck or even a commercial lorry can be used as collateral.
What determines the maximum amount I can apply for a logbook loan?
Basically, the current trade of value of your car is what determines how much you can apply for under a logbook loan. In most cases, we cannot advance you more than half the current trade value of your car. We also take your income into consideration just to ensure that you can comfortably pay your weekly, biweekly or monthly repayments without any problems.