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Logbook Loans

Borrow against the value of your vehicle

Logbook loans are loans secured against your vehicle - car, van, motorcycle. Ownership of the vehicle transfers to the lender while you pay off the loan. In the meantime you continue using it as normal. When you have paid off the loan the vehicle becomes yours once more.

Be careful when considering the use of a logbook loan. Your vehicle is at risk if you fail to keep up repayments. And there may be better value loans available to you depending on your circumstances. You can use our Quick Start tool to help you identify these other options.

Logbook Loans: Summary

  • Borrow against your vehicle's value - £500 to £25,000+
  • Your loan is available the same day
  • Lender takes temporary ownership of your vehicle
  • You continue to use the vehicle as normal
  • Be careful about the total cost of borrowing this way
  • There may be cheaper and more flexible alternatives
  • Credit check is required

Dos and Don'ts

Do:

  • Ensure you make payments on time. You risk losing your vehicle if you don't
  • Ask yourself if this is the correct type of borrowing for your needs
  • Consider if this form of borrowing is cost effective

Don't:

  • Put your vehicle at the risk of repossession unnecessarily
  • Borrow if you can't afford the repayments

Our Preferred Partner: Mobile Money

If, after due consideration, you believe a logbook loans meets your needs then you can apply through Mobile Money.

Mobile Money banner advert

They are the biggest and the longest established logbook lender in the UK - so they have the most to lose by not acting in a responsible way. They also receive strong feedback from their customers.

Regulated by the FCA, registration no. 455568

Logbook Loans: things to know before you apply

Please note: this information is for guidance only. You should clarify the terms of the loan with the lender before entering into an agreement.

The loan period

With the annual interest rate of 100% you don't want to be borrowing in this manner for long - see the representative example of the right hand side panel. Most loans tend to be taken for 6 to 18 months.

The amount you can borrow

There are 2 critical factors determining the maximum amount you can borrow:

  1. It has to be affordable - i.e. you can demonstrate that the loan repayments are manageable within your monthly budget. You will be required to provide the lender with evidence of your income and outgoings.
  2. The vehicle's value - the lender's maximum loan is typically between 60% and 100% of the vehicle's market value.

The average loan value is around £1000.

What is the process for getting a loan?

These are the steps for applying and completing a loan:

  1. You complete the short enquiry form and get your quotation
  2. The lender will contact you and ensure that a logbook loan is right for you given your personal circumstances.
  3. You application will be assessed and an affordability check will be done - you will need to provide ID and details of your income and expenditure
  4. With your approval a credit check is done. If it is OK you will receive a quotation.
  5. If you wish to proceed the lender will want to see the following paperwork:
    • the vehicle logbook (the V5)
    • the MOT certificate
    • the insurance documentation
    • your ID (e.g. passport or driving licence)
  6. The lender will then want to see the vehicle itself - you take it to one of the lender's many branches, or there is the option of a home visit
  7. If you are happy with the loan agreement you sign it and the "bill of sale" (that transfers ownership of your vehicle to the lender).
  8. You get your cash loan.
Are you eligible for a logbook loan?

To qualify for a logbook loan you must meet certain criteria:

  • your vehicle must not have any outstanding finance
  • your vehicle must have an MOT (if it is 3+ years old) and typically cannot be more than 10 years old
  • you must be the legal owner of the vehicle
  • You must be over 18 and live in England, Wales or Northern Ireland (sorry, we can't help you if you live in Scotland due to a different legal system)
  • you must be able to demonstrate that you can afford the loan repayments
A "Bill of Sale" - what this means

When you use a logbook loan you use your vehicle as security. A Bill of Sale is the legal device that makes your lender the temporary legal owner of your vehicle until you have repaid the loan in full. If you default on a term of the loan (e.g. late payment) then you would be served a default notice. If you do not put right the default then the lender is permitted to repossess your vehicle and sell it to cover the remaining loan amount. It does not have to seek any further permission to do this.

You have a 14 day cooling off period

Under law you have a period of 14 days from the time you sign the agreement in which you can change your mind and cancel the agreement. If you cancel you must repay the loan within 31 days although you will be charged interest on a daily basis.

Explainer video

This service is free to you. We may earn a commission from Mobile Money if you take a loan via their logbook loan service. This is paid by them not by you.

All about Logbook Loans

Representative Example

Loan Amount

£1000

Monthly Repayment

£116.31

Loan Term

18 mnths

Total Repayment

£2093.58

Interest Rate (fixed)

111.3% p.a.

Representative APR

189.9%

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You may incur extra charges, impair your credit rating and have your car repossessed if you do not keep up repayments on a loan secured on it.

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