Can I apply for a logbook loan even if I do not meet one of the basic requirements?
No. For you to be considered for a logbook loan, you need to meet all the requirements. For instance, even if you own a car and are a resident of the UK, you will still be denied a logbook loan if you are not of legal age. There is no compromise on this. You need to be eligible to apply for a UK logbook loan.
Is any type of car acceptable as collateral for a V5 loan?
Generally, any car owner is free to apply for a logbook loan. We accept all car types and models as security. The only thing that perhaps you should be aware of is that the car you present to us as security should not be more than 10 years old.
I own a motorcycle. Can I use it as security to take out a V5 loan?
Of course you can! When we say a logbook loan, we do not necessarily mean that only individuals with a car can apply. On the contrary, individuals who are proud owners of a motorcycle, a van, a truck or even a commercial lorry are free to apply for a logbook loan.
How much am I entitled to under a logbook loan?
To be sincere, the minimum or maximum amount you can qualify for under a logbook loan is dependent on the current value of your car, your income, as well as your ability to repay the loan. As a security measure, we only advance up to half your current car’s official trade value. This is to leave room for aspects such as depreciation as well as not to get into losses when we sell the car in the unlikely event that a customer is unable to repay the loan.
What can I do to ensure that I improve my chances of getting approved for a V5 loan?
We like to think of a logbook loan as a guaranteed loan instrument. However, in order to improve your chances of approval, ensure that the car you intend to set up as collateral is in good shape, undergoes repair and maintenance regularly, has a Ministry of Transport (MOT) certificate and is less than a decade old.
Do I need a guarantor in order to be considered for a logbook loan?
Not at all! Logbook loans are secured loans against your vehicle and therefore you do not need to have a guarantor in order to be considered for a V5 loan. All that you need is a vehicle and you are good to go.
Can I still apply for a logbook loan even though I have a history of bankruptcy?
The good thing about logbook loans is that so long as you have security and have demonstrated ability to repay the loan without hiccups, your history of bankruptcy, arrears or defaults doesn’t count. In any case, the results of credit checks do not count much in the decision to approve or reject an application.
Do you penalise me if I repay my loan earlier than expected?
We do not penalise our customers for earlier repayment. In fact, we strongly recommend and advise our customers to clear their logbook loans in the earliest time possible as it serves to increase trust and also ensure that they steadily improve their credit score status.
Can I use my partner’s car as security for a logbook loan?
We cannot accept a car that is not registered in your own name as security for a logbook loan. The car you present to us as security must be registered in your own name and should not belong to your cousin, brother, father, mother, sister, spouse or any other person!