|Lender||Credit Check?||Loan Amount||Annual APR||Representative APR||Read Review|
|No||£200 - £50k||96%||248.20%|
Car Cash Point don't charge any fees for early redemption so you can pay back your loan early and make overpayments at no extra cost. Their interest is calculated on a 'pay as you go' basis which means that interest is only charged during the time you actually hold the loan. They also have a Trustpilot score of 9.1 / 10 from 187 reviews. You can request a free home visit or they can meet you somewhere convenient.
|No||£400 - £50k||127.2%||491.36%|
Hermes Property Services are the company that took over the controversial lender Logbook Loans Ltd which was stripped of its consumer credit license by the Office of Fair Trading for breaking financial regulations and was forced to cease trading..
|No||£500 - £50k||125.64%||498%|
V5 Loans are a smaller lender with higher APR rates than the others. They don't have any reviews from satisfied customers on independent sites like Trustpilot so prospective borrowers will need to do their own research before applying.
|No||£200 - £25k||132%||464.4%|
Mobile Money have branches throughout England and Wales, such as Liverpool, Manchester and London, and have been trading since 1998. They mention on their site that they will charge you an additional £30 document registration fee when you apply to them.
Ever since the financial crisis and recession it has become much harder to borrow money from banks and traditional lenders. The result of this has been to encourage new forms of lending. For example, it is now possible to get loans on your car if you live in the UK. These are commonly referred to as logbook loans and you can apply for them online and often get them on the same day.
If you're considering a logbook loan, here's a comprehensive guide to understanding them and how to get one.
A logbook loan is a short term secured loan that you can get whenever you are short on cash. You can use the money for whatever you want; there are no stipulations as to how it will be spent.
In exchange for the money, you will hand over your V5 logbook (vehicle registration certificate) for your vehicle. The loan is secured against your vehicle. In short, you are signing a bill of sale that, in case you are unable to repay the loan in full according to the terms of the agreement, the lender can keep your car.
The lender is given temporary ownership of the vehicle through a bill of sale. This bill of sale is registered with the High Court, which is subject to public inspection. The valuation for your vehicle is based on the value listed in Glass's Guide. The loan amount will be for a portion of the lowest trade amount minus any financing still owed on the vehicle. The loan is then registered with HPI. Technically, the lender legally owns your vehicle until the loan is repaid. You are still able to drive your car as you normally do as long as you keep up with your payments.
To be eligible for a loan, borrowers must be 18 years of age or older. You must prove that you have a job with a steady income. You will be asked for paystubs or other form of proof of income. Because the loan is secured with the title of the vehicle, you must be the registered owner, and the vehicle must be free of financing. The vehicle must also be insured, taxed and MOTed.
One of the perks of a logbook loan is that it doesn't require a credit check which many lenders require in order to lend and set interest rates. There is no need to worry about poor credit or a lack of credit because these loans are based off of your income and the value of your vehicle.
If you've ever been refused a loan because of bad credit, you know how frustrating that can be. Logbook loans make it easy for people with adverse credit to get money when it is needed quickly. The application process is fast, and you'll have your money the same day. You are still eligible to apply even if you have a County Court Judgement (CCJ) against you.
The pros of a logbook loan are fairly obvious. It is a quick way to get money when you're in a pinch financially. During tough economic times, you may find it comforting to know that you can have money the same day in an emergency. There are no credit checks, so if you have bad credit or a poor credit rating then you can still get a loan.
The cons should also be considered carefully. Log Book Loan interest rates are notoriously higher than the interest rates for conventional loans. The lender assumes ownership of your vehicle until the loan is paid in full. Remember that these are loans secured against your car. This means that if you are unable to repay the loan, your vehicle will be repossessed and sold at auction. If the sale price at auction does not cover the money owed, you will still be responsible for paying off the remainder of the loan. However, if you are unable to make the payments, but turn over the vehicle on your own before actions are taken to repossess it, the lender may consider this payment in full on the loan.
Please see our table above to find the cheapest low interest logbook loans currently available in the UK.
If you're considering a loan, look for the lender that can provide you with the lowest interest rate and the best repayment terms. Representative APR rates vary from 345.9% - 493.94% among the top lenders like Car Cash Point, Mobile Money, Auto Money and Hermes. If the interest rates are comparable, take a look at the document registration fees. These can range from £30 - £55. Be sure to check that the lender is a member of the CCTA.
Please see our comparison table above where you can easily compare logbook loans in the UK. We will soon also be adding a logbook loans calculator to this site so you can work out exactly how much money it will cost over time.
It is essential to choose a reputable lender for your logbook loan. Make sure the lender is a member of the Consumer Credit Trade Association (CCTA). This means they are governed by the CCTA's Code of Conduct. Bill of sale loans are regulated according to the Consumer Credit Act of 1974. You can find a copy of the Code of Conduct online or by requesting a copy from the lender.
For traditional loans, APR (annual percentage rate) can vary from one customer to the next based on credit worthiness. These APRs don't take into account certain fees associated with the loans. Now lender, including logbook loan lenders must list a representative APR. This representative APR includes the interest rate and all charges associated with the product or service. Lenders usually work out the representative APR based on the previous 12 months of business. The representative APR listed in the advert cannot be less than what the lender expects 51 per cent of its borrowers to pay. Unless otherwise noted, a representative APR is based on a credit limit of £1,200.
You can complete an online application and receive a call back from a lender's agent or call the lender directly to get the ball rolling. During the phone call, you'll speak with a loan advisor about you, your income, your vehicle and your loan needs. Once you've provided these details, you'll be given an estimate of how much you can borrow based on your vehicle's value and your ability to repay the loan. You will then meet with an account manager to complete the process. You can do this by going to one of the lender's locations, or some lenders offer to have an account manager come to you at your home or place of work. The account manager will inspect your vehicle and confirm your income details. The lender will then finalise the amount you can borrow. You'll sign the contract and receive your cheque which can be deposited or cashed at the store. The funds can be used right away.
You are expected to make your payments on time in the correct amount. If circumstances arise that make you unable to make your payments as agreed upon, you must contact the lender immediately to discuss possible reduced payments until you can resume regular payments.
There are a variety of repayment options with most loan terms lasting 12-48 months. Payments may be made weekly or monthly. Some lenders also offer the option of making payments every two weeks.
A logbook loan can help someone with poor credit out of a financial bind. Not everyone has a relative or friend to turn to when he's short of cash. Online logbook loans provide a practical solution for this kind of situation. Remember, you can always pay your loan off early to reduce interest payments and save money on the loan.