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Applying for Logbook Loans UK

by Jim ONeil on November 7, 2012

in logbook loans

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The UK may have the most considerate lending and financial institutions in the world. This is because of the existence of so many generous offers meant for those who normally could get loans due to their circumstances.

People who have very poor credit ratings are definitely some of those would find it hard to seek for loans.

However, if they happen to have regular jobs with fixed incomes, they you could still get no credit check loans. If you do not fall under this category though and you are in dire need of money, the option would be to apply for logbook loans.

A logbook loan is actually a kind of secured loan. This means that in order to apply for this loan, you have to present security or collateral. However, instead of real property, you can present your car. The good thing about this though is that you can still make use of your car.

This is because the only thing that you would present to the lending firm is your registration certificate, which is otherwise called in the UK as the logbook. With the car still in your garage and ready for use anytime you want to, this is indeed an advantageous arrangement for you.

Before you could apply for a logbook loan though, you should make sure that that you comply with all the requirements. Among the very first that you should deal with is the logbook itself. Of course, the car must be legally registered to you.

The lending firm would insist that that the name of the borrower is also the same as that in the logbook. If the car was purchased through financing, the payment should be complete already. This means that you are already freed from any obligation to the financing firm. However, there are some lending firms that may accept your application if you only have a month or two left to complete the payment.

The lending firm would naturally expect your car to be relatively new so that it would still have value as a form of security. Its registration should not be earlier than 2004. It should also be not older than 8 years. Once you have complied with the said requirements, you can then apply for a loan with payment period of 78 weeks at the longest.

One admirable feature of this kind of loan is that if you settle the loan earlier than the agreed term, all your penalties would no longer be charged on you. Of course, by the time you have repaid your loan, you could get your logbook back. Under this arrangement, it is clear that you have your car as security for a loan but this does not mean your inconvenience.

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