In-depth guide to Logbook Loans
This video explains what logbook loans are and how they work.
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▶️ ON OUR WEBSITE & "MONEY MATTERS" BLOG
- Logbook loans: https://www.solution-loans.co.uk/credit/logbook-loans/
- What are logbook loans and why consider one? https://www.solution-loans.co.uk/blog/logbook-loans-consider-one/
- Extra protection for those using logbook loans: https://www.solution-loans.co.uk/blog/extra-protection-using-logbook-loans/
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▶️ VIDEO TRANSCRIPT
Just as secured loans are guaranteed by a borrower’s home, so logbook loans are secured on a borrower’s vehicle, be that a car, van or motorbike. This means that the lender owns the borrower’s vehicle until the loan is fully repaid although he or she can continue to use the vehicle in the meantime. When the loan is repaid, the borrower owns the vehicle again.
The maximum loan amount available varies considerably between lenders but in all cases will be limited by the market value of the vehicle. The amount available varies between £200 and £75,000 according to what the vehicle is worth and, generally, lenders will lend between 50 and 100% of its value.
A lender will assess a borrower on affordability criteria. It will also want to examine the vehicle that is being put forward as security either at one of its branches or during a home visit.
When you are accepted for a logbook loan, the lender will take possession of your vehicle’s logbook or V5 - the document which names you as the registered keeper of the vehicle. As well as signing the usual credit agreement, the borrower will also have to sign a bill of sale form which transfers ownership of the vehicle to the lender on a temporary basis. This does not affect who uses the vehicle or a borrower’s insurance and he or she can continue to drive it as normal so long as the repayment schedule is adhered to.
Bill of sale documents are legally binding in England, Wales and Northern Ireland although they are not used in Scotland.
Like other forms of credit, should you fail to keep up with repayments, you’ll be served with a default notice by the lender which will give you a chance to put the matter right. If you fail to satisfy the default notice, then the lender will be able to permanently take possession of the vehicle and sell it to cover the outstanding loan. A bill of sale is only legally binding if it is registered with the High Court so a lender will have to apply to another court to take possession of the vehicle if it is not. Most logbook loan lenders automatically register bills of sale with the High Court.
------
▶️ ON OUR WEBSITE & "MONEY MATTERS" BLOG
- Logbook loans: https://www.solution-loans.co.uk/credit/logbook-loans/
- What are logbook loans and why consider one? https://www.solution-loans.co.uk/blog/logbook-loans-consider-one/
- Extra protection for those using logbook loans: https://www.solution-loans.co.uk/blog/extra-protection-using-logbook-loans/
------
▶️ SOCIAL
Like us on Facebook: https://www.facebook.com/SolutionLoanUK
Follow us on Twitter: https://twitter.com/solutionloansuk
Follow us on Instagram: https://www.instagram.com/solutionloans/
Website: https://www.solution-loans.co.uk/
Subscribe to our YouTube channel: http://bit.ly/solutionloansYT
------
▶️ VIDEO TRANSCRIPT
Just as secured loans are guaranteed by a borrower’s home, so logbook loans are secured on a borrower’s vehicle, be that a car, van or motorbike. This means that the lender owns the borrower’s vehicle until the loan is fully repaid although he or she can continue to use the vehicle in the meantime. When the loan is repaid, the borrower owns the vehicle again.
The maximum loan amount available varies considerably between lenders but in all cases will be limited by the market value of the vehicle. The amount available varies between £200 and £75,000 according to what the vehicle is worth and, generally, lenders will lend between 50 and 100% of its value.
A lender will assess a borrower on affordability criteria. It will also want to examine the vehicle that is being put forward as security either at one of its branches or during a home visit.
When you are accepted for a logbook loan, the lender will take possession of your vehicle’s logbook or V5 - the document which names you as the registered keeper of the vehicle. As well as signing the usual credit agreement, the borrower will also have to sign a bill of sale form which transfers ownership of the vehicle to the lender on a temporary basis. This does not affect who uses the vehicle or a borrower’s insurance and he or she can continue to drive it as normal so long as the repayment schedule is adhered to.
Bill of sale documents are legally binding in England, Wales and Northern Ireland although they are not used in Scotland.
Like other forms of credit, should you fail to keep up with repayments, you’ll be served with a default notice by the lender which will give you a chance to put the matter right. If you fail to satisfy the default notice, then the lender will be able to permanently take possession of the vehicle and sell it to cover the outstanding loan. A bill of sale is only legally binding if it is registered with the High Court so a lender will have to apply to another court to take possession of the vehicle if it is not. Most logbook loan lenders automatically register bills of sale with the High Court.