Log book Loans In Simply Terms
A log book loan is financing that is secured on the V5 document of your vehicle. If you own a car, you can release money from your car, where the car's logbook act's as a guarantee on the loan. Some people may get confused with poor credit car loans or car finance, however, this is a relatively new type of funding and is rapidly gaining in popularity across the whole of the UK as a method to get money even if you have had problems with with bad credit in the past.
How do Log Book Loan's work?
Log book loans are a way of obtaining money using a loan, that are suitable for UK car owners. All loans are granted subject to your affordability and eligibility. Whilst the logbook is your proof of ownership of the car, this type of finance is secured on the actual car.
The lender maintains possession of the log book, and the car remains in the possession of the borrower, for the duration of the payments. Once the loan has been repaid, the log book is returned to its owner. The borrower must keep the car in good condition, and ensure the vehicle is legal and roadworthy, for example, to ensure the car has a valid licence, road tax, car insurance and MOT certificate.
The main criteria for a borrower to obtain a logbook loan are:
- The log book must in the name of or on behalf of the borrower.
- The borrower should be in full-time employment, i.e. have a regular source of income.
- Any taxes or insurance due on the vehicle should be paid in full before the vehicle logbook is promised to loan book.
- The vehicle should ideally not be older than 10 years.
- The vehicle shall not be currently have any finance; it must be clear of all finance.
- The vehicle must have passed inspection tests, including MOT, to be eligible for a loan. Each vehicle must be tested every 3 years in order to verify its validity.
Log book loans are suitable for borrowers with a poor credit rating. The lender will need to ensure that the loan is affordable for the applicant before proceeding. The amount of the loan will depend on the individual lender and the value of the vehicle. Loans may be repaid over various terms from twelve to thirty-six months. You can enquire about a bad credit log book loan online today.