Borrow £100 to £25,000*
- Bad Credit Accepted
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Short Term Loans
£100 – £1,000
Rates from 278% to 1576% APR*
3-12 month repayment
£1,000 – £25,000
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Rates from 5.7% to 278% APR*
3-36 month repayment
Representative example: £500 borrowed for 5 months. Total amount repayable is £991.85 in 5 monthly instalments of £198.37. Interest charged is £491.85, interest rate 238.1% pa (variable). Representative 481.6% APR.
Logbook Loans – Online V5 Lending
- A logbook loan is an easy way to lend money using your vehicle as security.
- The loan uses your V5 document as security, and you can typically lend up to 80% of your car’s value.
- You can carry on driving your vehicle throughout the loan duration, and your V5 is handed back upon loan completion.
With logbook loans, customers can release up to £50,000 secured against their vehicle. So whilst you may have been turned down for other types of loans and finance, many borrowers are able to release money from the car, bike or van that is sitting in their drive way.
The idea of a logbook loan is that you are temporarily handing over your ‘logbook’ to the lender during the duration of the loan. The logbook is also known as a V5 registration document and confirms that you are the registered keeper of the vehicle.
Logbook loans allow you to receive a large cash sum upfront from the lender and during this time, they are ‘holding’ your vehicle as security. Despite this, the main benefit is that you are still able to keep using your vehicle as per usual. In the event that you cannot keep up with repayments and all options have been exhausted, the lender could repossess your vehicle in order to claim back their money.
By applying through UnsecuredLoans4u, customers can borrow from £500 to £50,000 repaid over 1 to 3 years, with the option to repay early at any time. To get started, simply click on apply now and you will be taken to our online application form where you can enter your information and get a free quote in minutes.
Borrow anything from £100 to £25,000 today.
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Benefits of a V5 Logbook Loan
|Borrow up £50,000 secured against your vehicle||The actual amount of money you can borrow against your vehicle is usually around 80%, capping at £50,000. What’s more the money can normally be made available to you very quickly indeed.|
|Continue to use and drive your car||One of the key benefits of a v5 loan is that you can carry on driving your vehicle throughout the loan period. Though you have surrendered your logbook as security, you are free to carry on using your car as before. This is particularly helpful if you commute to work.|
|Repaid in monthly instalments||Convenient monthly instalments will be explained to you, so you always know where you are with your repayments. There are no hidden charges or unexpected surprises when you take out a loan.|
|Funds available within 48 hours||Fast online application and in some cases same day funds are available. Usually available within 48 hours, your money can be transferred directly into your bank account making these very convenient ways to lend.|
Can I Apply for a Logbook Loan with Bad Credit?
Yes, logbook loans are commonly used for borrowers with bad credit ratings. The difference with this type of loan compared to an unsecured loan, is that you have something value (your vehicle) which is worth something. Since you are using this as collateral, it is how the lender determines your eligibility and how much you can borrow.
For this reason, there are companies that offer logbook loans with no credit checks, instead taking into the account the value of your vehicle and its age. Usually, the more expensive and more modern the vehicle, the more you can borrow.
What Information Do I Need to Give for a Logbook Loan?
When applying for a logbook loan in the UK, the lender just needs to confirm three things:
- Your identity
- Proof that you own the vehicle
- Your affordability
To provide this information, you can start by completing the online application with UnsecuredLoans4u. In particular, logbook lenders want to see that you have a regular employment and monthly income so that you can afford to make the monthly repayments. You need to be over 18 years of age, a full-time UK resident and the registered keeper or owner of the vehicle. Your car is used as security and therefore it falls under a loan without a guarantor.
You will need to provide copies of the following information:
- Valid MOT certificate
- Proof of address (recent utility bill or bank statement)
- V5 registration document (also known as your logbook)
Can I Apply for Logbook Loans with Older Cars?
Yes, logbook loans for older cars are eligible for finance, depending on the on-the-road value and current condition. For instance, some classic cars that are more than 25 years old may be more valuable than cars that are only a few years old.
The advantage of applying through UnsecuredLoans4u is that we work with some of the best logbook lenders in the UK, so whilst some lenders may not accept older cars, we have a sufficient number of providers on our panel who may be able to proceed with your application.
Our application is completely online and there are no upfront fees for applying. You can apply 24 hours a day, 7 days a week and receive an instant decision on screen. If successful, you will be able to proceed with the best logbook lender based on your requirements and typically receive funds within 48 hours.
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What Vehicles Can Be Used for a Logbook Loan?
Any vehicle can be used to apply for a logbook loan whether it is a can, motorbike, van, motorhome or tractor. However, most of the loans that are approved are with vehicles that are less than 10 years old and are owned outright by the borrower.
How Do Repayments Work for a Logbook Loan?
The average loan has a duration of 1 to 3 years and it is repaid in monthly instalments, confirmed to you in writing before your loan is funded. Since you are using your vehicle as security, this reduces the risk for the lender, which is why the average logbook loan costs around 80% to 90%, making it much cheaper than payday loans.
You always have the option to pay your loan early and by doing so, you will save money since you will be accruing less interest overall.
Once you have paid off your loan in full, the transfer of your logbook will be sent back to you and you will continue to own and use the vehicle as you wish.
Your collateral is at risk, so if you cannot keep up with repayments, the lender is able to repossess your vehicle. Importantly, they do need require a court order and can seize the vehicle upon short notice.
Does The Logbook Company Own The Car?
There is some degree of risk when you take out a loan against your own car. You may end up losing it once you fail to settle your end of the deal. So, yes, that is definitely one way to look at it as the logbook for the vehicle is nine times out of ten held at the main office securely until the agreement is settled in full. So, until that is done and it is returned, the vehicle is theirs. On the other hand, there are set limits to car management when the logbook company has the car in their possession. For one, obviously, they can’t sell or even drive it. You still have control of the car so you can still use it once payment is settled in full.
Logbook Lending Tips & Advice
As with any loan, it’s always a good idea to shop around first before sealing the deal with a lender. Check out and try using comparison sites before settling on a lending offer. You’ll find that different companies have varied terms, rates, and policies that will help you decide whether one is a better fit than the others. Now, just because one lender won’t loan you the money, it doesn’t mean the others would decide similarly. You would find then that the more options you consider, the greater your chances are to be approved and get your cash. Moreover, some lenders will offer you better rates than others.
Always compare different types of financing before zeroing in on one option such as a logbook loan. You might find that a guarantor or a remortgage is a better option for you. Evaluate whether a logbook loan is something that you could successful carry out to completion or perhaps other options could be less riskier or more suited to your budget and needs. Other options might include asking for an advance from your employer, or even asking for a loan from parents. You can also try getting a credit card with 0% APR as a sign-up bonus.
Tell Me The Basics I Need
Cars are practical buys and good investments as this can also serve as a collateral for borrowers. In order to get a loan against a car, you must first be the owner of the vehicle because If you are not, please stop here as this product will not suit you. A personal or guarantor type product will be of more use to you. Routine credibility checks will be made to validate ownership. We and the lenders will ask for some very basic details about the car in question like registration, make, and model; and other similar information which are normally enough to let them know who owns the car and what finance is left on it. The application will then go through the normal steps making sure that the monthly instalments are affordable for you. If everything is okay, they will proceed and pay the money out in a fast and timely manner.
Be in the loop and know the actual resale value of your car in the current market. Another tip is to think about the type of vehicle you own before you go ahead. You’ll avoid being shortchanged this way. Most likely, the loan will be tied to the resale value of your car or bike rather than the amount you paid or its actual tag price. This means you can’t assume that a very expensive car will necessarily help you to get a very good loan. You have to think of its current market value when assessing repayments and not how much you actually paid for it.
My Car Is On Finance, Is That An Issue?
Unfortunately, this is more than likely to cause issues if you still owe money for your car. With such scenario, It’s highly unlikely that the lender will approve of it and allow to lend money on that vehicle. The reason for this is in the event that you fail to make your monthly instalments, the finance company has the right to repossess the car and sell it to recover their expenses. So, in order to avoid such inconvenience, please make sure you can afford to keep the monthly instalments up when you apply, if not then be prepared to lose the item you use for collateral.
There are some circumstances wherein the company may decide to lend on a particular item currently on finance. Under normal conditions, this could still be considered especially if you are due to make your final payment on your current finance as this is often seen as low risk.
How Do I Apply For A Loan?
Look at your different options and consider the strengths and weaknesses of each before settling on any type of loan. Yes, know how to shop around for financing options and be able to weigh which one complements your budget type and has more flexibility in payment terms. It is wise to consider different companies and make sure not to just think about how much they’re willing to lend or the rates but most importantly, check on their flexibility. It may be that you do better to pay slightly more over a longer period of time versus paying less but paying in a big lump sum. While trying to compare and contrast financing offers, consider your cash flow and think about whether you’d be able to recoup some of the lost interest by putting the money into savings while you make your repayments.