Log book loans are a form of secured loan which use the value of your car as security against the loan value. This means that if you own your own car then you are more than likely able to borrow money using log book loans but there are a few simple criteria that need to be met in order to be assured of acceptance for a loan of up to £50,000.
You obviously need to own your own car and there are some restrictions on cars that can be used. Typically, the car needs to be less than ten years old and it must be free of credit, meaning that you own the vehicle outright with no outstanding finance. The vehicle must also have fully comprehensive insurance and be taxed with a valid MOT certificate to be considered viable for use with log book loans.
Log book loans do not require a credit check. This means that even if you have a poor credit rating or you have CCJs, arrears, and defaults against your name you can still borrow money using a logbook loan. Employment records aren’t checked and you don’t need to self certify so if you are self employed, you can benefit from such a loan and you can have access to emergency funds in a hurry.
However, you should have a regular income and be sure that you can meet the monthly repayments otherwise you do stand to lose your car if you fail to meet the regular repayments. You also need to be aged 18 or over and be the named owner of the vehicle. If you meet these criteria then you can borrow as much as £50,000 against the value of your car and you can even keep driving it while you repay the money.
You don’t even need to live near a logbook loan company. This is because you can apply for log book loans entirely online. You shouldn’t need to fax any paperwork over and the money can be placed straight into your bank account. An agent will need to visit your home to see the car and collect the logbook but this can be arranged according to your availability.