Logbook Loans up to £10,000

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Representative 49.9% APR (variable). Representative Example: If you borrow £1,000 over 12 months at a Representative rate of 49.9% APR (variable) and an annual interest rate of 49.9% (variable), you would pay 12 monthly instalments of £103.06. The total charge for credit will be £236.72 and the total amount payable will be £1,236.72.

All You Need To Know About Log Book Loans in the U.K

Log book loans get their name from the collateral used to secure the loans- log books. In order to access a loan from a lender, you will need to surrender your log book to the company or bank offering you the loan.

Although you hand over your log book to the lender, you continue using your vehicle as long as you do not default on your payment. In the event that you are unable to pay your loan on time and you fall into arrears, then the lender has every right to reposes your vehicle.

Without further ado let’s take a deeper look at what Log book loans in the U.K are, how they work and whether they are the best option.

But first, what are the advantages and shortfalls of a log book loan in the U.K

Advantages of Logbook Loans:

  • Easily accessible
  • Available to people with low credit ratings
  • Fast processing time

Disadvantages of Log Book Loans

  • Very expensive
  • High risk of losing your car
  • You hand over the ownership of your car to the lender
  • There is a charge on early repayment

How Do Log Book Loans Work?

Previously, you could only apply for a loan in a brick and motor office. However, due to technological advancements, it is now possible to apply for your loan online.

How Much Can You Borrow?

The limit of the loan will depend on a number of factors. Mostly, many lenders will offer a minimum of 500 pounds to a maximum of 50,000 pounds. The loan amount also depends on the value of your vehicle.

Another factor that will affect the amount of money you can borrow against your car is the firm’s policy. Some lenders will only lend you cash equal to half the price of your vehicle.

The Process

When you take a log book loan, the lender will require you to hand over your car’s log book or registration document. The document must be in your name to prove that you are the legal owner of the vehicle

You will also need to sign two documents known as “a bill of sale “and a credit agreement. After signing the documents, the lender now owns your vehicle until you repay your loan in full. However, you will continue using your car.

The “bill of sale” is only recognized by the law if the lender registers it with the Royal Courts of Justice; otherwise it is null and void. This means that even if the lender has the “bill of sale” but it is not signed, then they have to get a court order to repossess your vehicle.

To find out if a “bill of sale” is registered, simply write an application.

Note that there is a payable fee for this service.

What happens if the car has depreciated and its value is less than your loan balance?

Well, the lender can sue you and the court will order you to repay the balance.

How Do You Receive Your Cash?

Most lenders will do an electronic transfer where the money will be deposited into your bank account.

How Long Does It Take To Receive Your Cash?

The loan processing period differs from one company to the next but a log book loan is usually processed fast. Additionally, some lenders have a quick cash service but you will have to pay extra for the service. Usually, they will charge you 4% or thereabout of the loan amount.

Repayment Period

Most log book loans have a repayment period of one and a half years. However, the loan can be tailor made so that you repay your loan before the 18 months are over.

Repayment Options

There are two different repayment options. You can either pay the principle plus the interest monthly or you can pay the interest only every month and pay the principle at the end of the loan repayment period.

Who Is The Best Log Book Loan Lender?

There are very many lenders in the market nowadays and it is only prudent to do your due diligence. It is easy to find out the effectiveness of any loan lending company by checking honest reviews on the internet. A company with many positive reviews might be good place to start.

Once you identify a company that you feel you can borrow from, check out their terms and conditions. This will help you avoid any nasty surprises later on once you have already borrowed a loan from them.


Using a log book is one of the fastest ways to acquire a loan. However, there are some considerations that you should take into account before using this avenue. It is important to check out the pros and cons of a log book loan. We believe that this guide will be helpful in helping you determine if a log book loan is your best choice for accessing a loan in the U.K.

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