Logbook Loans

Logbook Loans


489.4% APR

Representative Example: On an assumed loan amount of £750 over 12 months. Rate of interest 191.2% (fixed). Total repayment amount £1726.68 and total interest is £976.68. 12 monthly payments of £143.89. My Financial Broker is a broker, not a lender*.

* As a broker, we are unable to ascertain exactly how many customers take out a loan or the lender’s rate of interest particular to that customer, therefore our calculation is based on the mean APR of our panel of lenders.


What are Logbook Loans?

Logbook loans allow you to borrow loans of around £2,000 by releasing cash from your car, bike or van. Funds can be made available within just a few days and loan terms are typically around 1 to 3 years.

A logbook loan means that you are temporarily ‘transferring’ your logbook to the lender, so that you can release one large cash sum upfront, but you can continue to drive your vehicle as per usual. Your vehicle is used as security and is at risk of being repossessed if you cannot keep up with repayments.

For many people, using a logbook loan can be a quick way to access finance, allowing you to borrow between 60% to 80% of your car’s overall market value. For customers with bad credit, it offers higher approval rates since your credit score is less important, and the value of your vehicle offers a good form of security to the lender.

Brokers can help you access funds when you need to cover an unexpected expense – they often work with a large number of logbook loan companies, helping you get access to the best rates across the market and the lender most likely to approve your loan.

What are the Benefits Of a Logbook Loan?

Logbook loans offer a fast and effective way to access funds, whether it is for emergency purposes, business purposes, paying bills or consolidating debts. For some customers who are limited to borrowing due to their credit scores, these loans offer a way to essentially borrow value from your car and get the finance that you need. When compared to the cost of payday loans, it is often considered a less expensive option.

When it comes to borrowing larger sums, such as £2000, logbook loans allow you to access funds, perhaps faster than you would through other types of personal loan or commercial business loans.
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Is a Logbook Loan Different to Other Secured Loans?

While a logbook loan may sound like a completely different form of credit, it is essentially the same as other secured loans. The most common type of secured loan is a mortgage, where the money you borrow is secured against the value of the property. As with a logbook loan, with a mortgage, should you be unable to keep to the repayments, there is a risk of your assets being repossessed – in this case, it would be your home rather than vehicle.

The main difference between a logbook loan and a secured loan such as a mortgage is that generally you’ll already own the vehicle outright, whereas you probably won’t be able to purchase a property in one full payment. Your credit score is therefore more important when applying for a mortgage loan than a logbook loan.

What Information Do I Need To Give For a Logbook Loan?

To move your application forward, the logbook lender needs to confirm three things: your identity, proof of vehicle ownership and affordability. You will also be required to meet the following criteria:

  • Be over 18 years of age
  • Be a UK resident
  • You’ll need to be the owner/registered keeper of the vehicle
  • Provide a valid MOT certificate
  • Have proof of address
  • Have your V5 registration document (also known as your logbook)

The lender will request these pieces of information from you step-by-step. To help move your application along quicker, it’s a good idea to have a copy of this information scanned on your computer and ready to proceed.

Is My Car Eligible For a Logbook Loan?

Most logbook loans require your car to be less than 10 years old. However, there are some loan providers who are willing to consider logbook loans for cars older than 10 years. Some lenders will require your vehicle to be finance free and others are more flexible – brokers will take all your requirements into consideration, and then match you with a lender that should be able to help.
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What are The Risks of Securing a Loan Against My Car?

With a logbook loan, you are using your vehicle as security, so if you cannot keep up with your loan repayments, the lender can repossess your vehicle. This is because they have given you money upfront and if they cannot collect their repayments, they have to recover the money that they have lent out.

Specifically, with logbook finance, the lender does not need a court order and can seize your vehicle upon request. However, this is only on the condition that your repayments have been in arrears for several months and many attempts to work with you and collect your repayments have failed. Repossessing of vehicles is costly to the lender, so it is always a last resort.

In addition to the repossession of your vehicle, failing to repay can lead to late fees being applied to the loan. There may also be an impact to your credit rating, which could inhibit your ability to borrow money in the future.

Do I Need Good Credit For a Logbook Loan?

As mentioned, because in most cases you’ll already own the vehicle, your credit history is not considered to be an important factor when applying for a logbook loan. And even if your car is on finance, as you will have been through credit checks to take out this finance, logbook loan lenders can be assured that you are able to manage your money and make the repayments.

This is why logbook loans are often a good choice for those with poor credit histories. The lender often won’t perform a full credit check, and you don’t need a guarantor to co-sign the agreement. Not only this, but taking out a logbook loan can help improve your credit score, as you’ll be demonstrating that you are able to keep to a credit agreement.

How Do I Apply For a Logbook Loan?

To apply for a logbook loan with a broker, you simply need to complete a short online application form, and you should get an instant decision. You’ll be asked to provide a few personal details and information about your vehicle, and should be matched with the perfect lender.

Many lenders offer a free service to their customers, working on a commission basis with their lenders. It’s a good idea to check with your broker to see whether any fees or charges are applicable.

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