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Representative Example
450.5% APR Representative
Our Lending Partners Representative Example: if you borrow £850 over 18 months at a flat rate of 132% per annum (fixed) with a representative 450.5% APR you will make 17 monthly payments of £140.72 and 1 payment of £140.76, repaying £2,533.00 in total. However, our lending partners only charge interest monthly and do not penalise you for early settlement. If you repaid the loan in one month it would cost you just £93.50 and nothing more.

What is a Logbook Loan?

A logbook loan is an arranged loan secured against your vehicle (car, motorcycle or van). The logbook (also known as a V5) will be held by the lender over the loan period, however you can continue to use the vehicle.

To apply for a logbook loan your vehicle can be up to 8 years old but must be clear or nearly clear of finance. You are also required to be the registered keeper of the vehicle the loan will be secured against.

Logbook loans are supplied with credit checks and proof of income will be required, you must be able to afford the repayments. The amount available to borrow will range between £400-£50,000 and will be determined by the vehicle value and your ability to repay the loan.

Who Can Apply?

Require a loan between £400-£50,000.

Be the registered owner of the vehicle the loan is to be secured against.

Own a vehicle (car, motorcycle or van) up to 8 years old.

The vehicle must be clear or nearly clear of finance.

You must be a UK resident and be able to provide proof of income.

Afford the repayments for the loan amount

About Us

Logbook Loans 2U connects you to a Logbook Loan specialist.

Our network of brokers and lenders could find you a great deal. Our lenders will use the information you submit to provide you with a no obligation quotation.

If you are the legal owner of a vehicle which is clear or nearly clear of finance and is up to 8 years old, you may be applicable for a logbook loan.

To find out if you are suited to apply for a logbook loan from one of our chosen lenders, complete the form above to get started.

We are a lead generator, and receive a commission for introducing customers to FCA authorised and regulated lenders and brokers. No advice is given or implied on this website. Our service is free and you are under no obligation to accept any quotes you receive. When taking out a logbook loan, the logbook is held and owned by the lender until the loan is re-paid.

You must be the vehicle owner and over 18 years old
All loans granted subject to affordability. Proof of income will be required.
A Log Book loan is secured against your vehicle, which may be repossessed if you do not make payment.
Late or missed payments may incur a charge for chasing letters and telephone calls.
Loan contracts start from 12 months to a maximum term of 36 months
Rates range from 99.9% to 606.3% MAX APR
Lenders abide by the CCTA voluntary Code of Practice
We do not have a renewal policy

Logbook Loans Overview

Logbook loans are loans secured with your vehicle. Though the lender will technically be in possession of your car during the duration of the loan, you retain the vehicle and can still use it. Cars that can be used as logbook loans must be under ten years old, but also must be entirely paid for. The vehicle must be registered to you and at the time the loan is secured, you must be able to produce proof of employment or income. Despite these few restrictions, there are many benefits to logbook loans.

Why the Banning of Logbook Loans Could Do More Harm than Good

There has been plenty of talk in the in media lately that logbook loans might be banned, citing usurious interest rates and payment terms. Some even believe that it is wrong to require those taking out the loans to offer their cars as security. In reality, logbook loans are often the only kind of loans that many people have access to. For those with poor credit ratings, traditional loans are rarely an option, as most lenders are not willing to take the "risk".

Using the car as security alleviates some of the risk for the lender, allowing them to offer loans to more people. Terms for short-term loans are always more drastic than those for long-term loans, and because the lender still consider it risky to lend to someone with a poor credit score, the logbook loan ensures their investment will be repaid. This is how loans work, across the board. Banks and independent lenders weigh the risk of loaning money to a certain person against the possibility of returns and make their lending decisions. Logbook loans are some of the only loans available to people who have low credit, and are therefore regularly refused loans from other sources. Without these loans, some may not be able to get the money they need and finally improve their ratings.

Who and Why Might Someone Take Out a Logbook Loan?

In general, logbook loans are great for anyone who needs to get money quickly. This could be for bills, for unexpected expenses, or even for planned expenses that are beyond your ability to pay. Some months, it seems bills stack up, all at the same time, and there just isn't enough cash at the end of the month to cover it. Other times, you or a family member can be hurt unexpectedly, and the hospital bills that ensue may strain your bank accounts. Vehicle, home, computer, and appliance repairs can arise unexpectedly and without a logbook loan, you might not be able to cover these necessary, if unplanned, costs.

In other circumstances, you may find yourself in situations where you know you need to pay for something, but you also know you don't have enough money to cover it. Moving, for example, besides the money required for the new house or apartment, costs money. Logbook loans can mitigate these costs without putting undue strain on your financial situation.

How Logbook Loans Improve Your Credit Score

Because logbook loans are shorter in duration than loans like mortgages or for vehicles, they are simply a way to help build your credit score. Whether you have a poor credit score because past financial difficulty or because you are just starting out, short-term loans with definitive payback terms are a great way to build your score. Especially for young people, who are trying to build their scores, these loans can provide an easy way to show banks that you are not a credit risk.

Unlike other loans with the same duration, logbook loans are only given to those who have proof of employment and subsequent income. This is vitally important and one of the reasons that these loans are so available to those in need. The amount of money loaned depends on evaluation of a person's ability to pay it back, ensuring that you are not saddled with a loan that you have no chance of paying back on time. While some criticize logbook loans for their terms, they are designed to help those with low incomes get the money they need and return the money in a reasonable amount of time.

For those who do not want to start using credit cards and are not in need of more long term loans, logbook loans are a great way to build your credit score.

How Taking Out a Logbook Loan Can Save on Bank Charges

Logbook loans can help ensure that you have enough money to pay your bills, without straining your bank account while you wait on your paycheck. Many people allow their accounts to go into overdraft, which can incur serious fees, only making their financial situation worse. Whether you have bills that subtract from your accounts automatically or pay manually every month, it is not unlikely to run into a situation where you have too many bills and not enough money.

In this situation, banks will seriously penalize overdrawn accounts, even if it is only the first time. If you have bills that need to be paid and not enough money to pay them, logbook loans can step in and provide the necessary bridge until your next paycheck. Whatever the situation is that may cause your bank account to be overdrawn, these loans can help you avoid the unnecessary punitive charges. By providing your vehicle as equity for a logbook loan, they are much more secure for lenders to offer and therefore easier to obtain than just about any other kind of loan.