Unexpected expenses can hit your finances hard and have a massive impact on your budget. In these situations, you may consider a loan to help you cover your urgent bills and get you back on track.
As a transparent loan broker rather than a direct lender, Tendo is on hand to match you with the best loans for your personal circumstances. We work with a panel of over 50 lenders who offer various types of loans that can provide you with fast access to funds. In this guide, we’ll look at what logbook loans are and whether they’re the right option for you. We’ll look at the benefits and disadvantages of logbook loans in the UK and the alternative loan options that are available to you.
What is a Logbook Loan?
A logbook loan in the UK is a type of loan where you borrow money against your vehicle. The lender temporarily holds onto your V5 logbook (vehicle registration document) as security while you repay the loan. You can still use your car, but the lender has the legal right to repossess it if you fail to make the loan repayments.
You need to make regular repayments on the loan and the lender will remain the legal owner of the vehicle until the loan is fully paid off.
How do Logbook Loans work?
A logbook loan is a type of secured loan where you borrow money against your car while still being able to use it. However, the lender temporarily holds ownership of your vehicle until the loan is fully repaid. You can apply for logbook loans online or by phone, depending on the lender.
The lender will check your car’s value to help them determine how much you can borrow. You will also need to provide details about your car, including its model, make and age, as this will also affect how much you will be offered with a logbook loan.
If you are approved for logbook loans in the UK, you will need to sign an agreement called a ‘bill of sale’ which temporarily transfers ownership of the vehicle to the loan lender. If the lender registers the loan agreement document with the High Court, they are able to repossess your car without seeking court approval if you fail to make the loan repayments. If the lender doesn’t register the bill of a sale with the High Court, they wouldn’t be able to repossess your car unless they go to court.
Can I apply for a Loan from Tendo Today?
The lending process is fast and simple with Tendo. You can use our online form to apply for a loan and we’ll use the information you provide to match you with the best lenders for your circumstances. In some cases, the lender may require some additional information from you to process your application.
Once you’ve carefully read over the terms and conditions and decided that the loan is right for you, you can accept the quote. It’s important to consider the loan’s interest rate and additional fees to determine whether you can work the loan repayments into your budget.
You must meet certain lending eligibility requirements before you can apply for a loan through Tendo. Applicants need to be at least 18 years old, a UK resident, employed and earning a minimum net income of £500 per month. You must also provide an email address and phone number.
What types of Logbook Loans are available?
There are different types of logbook loans in the UK depending on the lender, repayment structure, and your requirements. The value of your vehicle will also determine how much you can borrow. People typically apply for logbook loans online.
The repayment period for most logbook loans in the UK typically lasts from 12 to 36 months, although the exact term will depend on your loan and lender.
Here at Tendo, we can match you with various types of loans including payday loans and emergency loans. As a transparent broker, we can help you find the best loans from the panel of lenders we work with based on your unique personal and financial circumstances.
Why Choose Tendo for a Loan if you have a bad credit history?
Unlike many lenders, the panel of lenders Tendo work with consider applicants of all credit types. That means you could be approved for low credit score loans, even if you have a poor credit history and have been turned down for loans elsewhere.
There’s no obligation to accept any loans offered to you. However, if you choose to accept a loan, the money could be transferred into your account within the hour once the lender has conducted their affordability and credit checks.
What to do if you’re struggling with debt
While small loans in the UK can be a fast way to access funds, it’s important you understand the implications. If you need financial advice or assistance, it’s advisable to seek help from any of the following services:
If you feel you are struggling, or may struggle with your loan repayments, we recommend you always speak with your lender at the earliest opportunity.
