Logbook loans are actually a form of secured loans that can be got much faster than the conventional loans. Borrowers do not need to show houses as collateral, and cars can be used as security against the cash borrowed. If they fail to make their payments, the cars would be confiscated and sold off by the lenders. Many loan applicants in U.K prefer these loans because of the ease in arrangement of the collateral. A car’s logbook basically contains all the pertinent details of the car, which are VIN number, registration details, registered keeper’s information, etc. When you borrow the logbook loan, your logbook needs to be handed over to the concerned lender.

When all the borrowed money is repaid, the logbook is handed back to you. One prime advantage with these loans is that the cash is usually received within 24 hours of your application submission. Logbook is alternatively also called registration form-V5. Logbook loans should not be the first option of getting cash, as these are usually very expensive and cheaper ways of borrowing funds are available. People with poor credit scores find this loan option very appealing. The lenders are also comfortable lending out cash to them as the car is already received as a form of security. Credit checks are not conducted while applying for these loans and even if a person has CCJs against his name he can get a log book loan.

But the car which you put up as security should be in good shape and relatively new. Also, all financial agreements need to be duly fulfilled regarding the car and the tax and insurance should be fully paid. To give an estimate of how costly logbook loans UK are, an instance is cited. If a person had to borrow an amount of £1,500 through Logbook Loans over a period of 6.5 years, the total amount that he would require repaying would be £4,180.80. This is more than 2.5 times of the actual amount borrowed. That is equivalent to an APR of 437% (approximately). If a person wants to get monetary assistance through this mode of loans in U.K, certain conditions need to be met.

These are –

• The borrower must be an U.K. citizen.
• The person’s age must be 18 years or more.
• A logbook must be maintained in the borrower’s name.
• All the financial obligations pertinent to the car must have been cleared.
• The age of the concerned vehicle whose log book is pledged must not be greater than 8 years.
• The car / vehicle must be sufficiently insured and also taxed.
• The car’s registered owner must have a permanent income source.

The borrower needs to be cognizant of another important aspect too and that is the bill-of-sale. This is considered as the sole acknowledgeable document in the court. So, the borrower needs to ensure that the bill-of-sale is registered. The lender would need to approach the High Court for the repossession of the vehicle’s ownership rights if the bill-of-sale is unregistered.