A logbook loan or V5 loan is a loan that is secured on your car logbook that can be arranged without having to have a credit check and no matter what your credit history. They can be used for any purpose and the lenders will allow you to borrow as much as £50,000 so long as your car is worth enough money and you can afford to repay it. They can be paid out within 24 hours of applying for them, but will involve you taking the car and its logbook along to the nearest branch.

There are a growing number of lenders that offer this type of loan most with premises across the country, which means that you can get your loan paid out very quickly on the same day you apply in some cases. They are becoming quite popular these days as more people like the idea that they do not need to have a credit search done to get your loan approved.

To qualify your car will usually need to be less than 10 years old, classic cars or valuable sports cars will be considered at any age. You will need to be the registered owner of the vehicle which will also need to be free or nearly free of finance. Logbook loans can also be arranged using a motor bike, or light commercial vehicle as collateral. You must however be able prove your income and that you can afford to repay the loan.

The application process is normally in two parts starting with a telephone call to your chosen lender or by completing an online application form. Once the lender receives your application they will underwrite the loan and call you back to arrange for you to call into their nearest branch so they can inspect your vehicle. You will need to take your logbook with you and any other information that the lender has requested i.e. proof of income.

The interest rate that you are charged will vary depending on both the lender that you choose and also the amount of that you want to take the loan out for. Invariably the longer the term the more interest you will be charged. This makes it important that you not only shop around to find the best rate, but you also take the loan out for the shortest term that you can comfortably afford each month. This makes it important that you not only shop around to find the best rate, but you also take the loan out for the shortest term that you can comfortably afford each month, so that it does not cost you more than it should.

You should always remember that your loan is secured on your car, and should you consistently fail to make your repayments the lender will force the sale of your car in order to recover their money. So think very carefully and makes sure that you have enough money to regularly make the repayments. Imagine what you life would be like without your car!

Author Bio: Tom Dawson is a UK finance expert specialising in logbook loans and payday loans for uk residents. Visit his site today

Category: Finances
Keywords: logbook loans, v5 loans, car loans