We are an Introducer Appointed Representative of Quint Group Limited, who are a credit broker, not a lender. OinkMoney.com Introduces customers to Monevo Ltd who are an Appointed Representative of Quint Group Ltd for the purposes of obtaining a loan. Oink Money does not provide any loan or consumer credit products directly.
A logbook loan is only available to those with cars. Using the vehicle as collateral, lenders will technically own it until you pay back the full amount.
They are an alternative loan product, designed to help those who are unable to obtain an unsecured or personal loan for whatever reason.
They’re designed for borrowing larger amounts of money which will need to be paid off over an extended period.
Unlike pawning an item of jewellery or technology, you can still carry on using the car while it is under this agreement, but if you cannot repay the loan, then it will be seized.
UK-based log book loans are typically only available in England, Wales and Northern Ireland. If you are in Scotland, the terms are likely to involve a conditional sale or hire-purchase so thoroughly check before you agree.
This depends on how much you need, as well as the particular car you are using as security.
Some lenders cap the amount you can borrow at 50% of the current value of the car, but many have better limits of around 70% and 80% in place to be competitive. Some will only use cars valued over £500 as security and may require that there’s no other finance outstanding on it.
Most reputable lenders will ask you to get an independent valuation first. Most avoid carrying out the assessment themselves in case they are accused of vested interest and offer you an amount which doesn’t do your vehicle justice.
Logbook loans are available both online and on the high street, but the benefits of applying online are that it is often quicker, more straightforward and involves a lot less paperwork. The money can be paid into your account electronically, making it faster and easier.
Applying through Oink Money means you can see which logbook loans are best for you and your needs from a large panel of lenders, using Monevo’s clever comparison technology. This saves you time and means you will only apply to lenders who are most likely to accept you.
You may be asked to hand over the vehicles registration document (V5) before you are approved for a loan. The V5 proves you are the registered owner of the car, and you have the permission to carry out the deal.
As well as the credit agreement and document transaction, you will have to sign a ‘bill of sale’ to signify the temporary ownership change while you have the loan. You’ll also need to prove your total income, that you are over 18 and a UK resident.
Most logbook loans are taken out for around 18 months (or 78 weeks).
Remember you will have to pay back the full amount borrowed plus any interest accrued, so try to get the cheapest option available.
You are entitled by law to pay it off earlier if you wish. This can reduce the total amount of interest you pay if it is charged as a monthly excess. There may be high fees for this advantage, though.
Most lenders will only employ bailiffs to seize your car should you fall behind on several payments. They will try and negotiate an outcome, then must send you notice and give you 14 days to respond.
There is, of course, the risk you could then lose your car if you don’t reply and come to an agreement – not good if you rely on it to get to work.
If the bill of sale is registered with the High Court, they don’t need to get a court order to repossess your car so the process would be swift and you’d be unable to argue it.
Typical APR charges commonly exceed 400%, meaning you could pay back almost 4x what you borrowed if you spread the payments over the 78 weeks. It is, therefore, best to pay it off ASAP, which is why the law gives you this power.
Also remember you still have to pay for the costs of running the car each month as well as the repayments, adding to your monthly outgoings.
Overall, they can be a lot more expensive than other options. Secured loans have also always received a bad reputation, and logbook loan regulations did not give consumers full protection for many years.
They are now a lot safer than previously thought if you use them correctly and know what you are undertaking before you accept an offer.
In 2015, changes were made to the law to protect anybody who can’t repay their loan, or buys a second-hand car under a logbook loan:
This means that a lot of the information out there is either outdated or can be classed as scaremongering. Always read the terms and conditions before you take out a loan, make sure you are happy with them and know you can afford repayments even if your circumstances change.
Only take out loans with Financial Conduct Authority registered companies, and don’t be tempted to go with an unreputable lender if you are refused.
OinkMoney.com Introduces customers to Monevo Ltd who are an Appointed Representative of Quint Group Ltd for the purposes of obtaining a loan. Oink Money does not provide any loan or consumer credit products directly. We do not make short term loan or credit decisions.
We do not charge any fees. If you are contacted by anyone saying they are calling from Oink Money requesting you make them a payment, you should report this to www.actionfraud.police.uk immediately. We will never contact you asking for a payment.
*The loan amount and interest rate you are offered are subject to lenders requirements and approval. If accepted by a lender, a full credit check will be carried out. If Monevo are unable to find you a loan, they may offer you an alternative product. The time it takes for the funds to appear in your account may take longer, and will depend on your bank and the lender's own policies and procedures.