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Logbook Loans - No 1 Rated Rated Trustpilot Logbook Loan Lender

19.10.2022 by Paul H

Logbook loan

What is a Logbook Loan?

A logbook loan is the perfect solution for car owners looking to withdraw the equity from their car via a same-day cash loan while still retaining full personal use of their vehicle. The minimum and maximum loan size typically will range from between £ 500 - £150,000 and up to a maximum of 65% of the car’s trade value, based upon a CAP HPI or other industry expert market valuation.

The loan terms offered by lenders typically vary from a minimum contract term of 12 months to a maximum of 60 months, depending on the logbook loan provider. Many lenders allow the borrower to settle the loan early ‘100%’ penalty free, make overpayments, and pay reduced interest on the lower balance.

When a borrower gets a logbook loan, the lender becomes the legal owner of the car. The borrower can keep driving the car as usual during the loan repayment period, even though the lender will be the official owner until the loan is paid in full.

The logbook, also known as the V5C registration certificate, is required by most lenders to verify your status as the vehicle's registered owner.

Please remember that a logbook loan is a type of collateralised loan in which the title to a vehicle serves as the primary form of collateral. Logbook loans do come with high interest rates, and the loan is secured against the vehicle, so missing payments could put the car at risk of repossession.

Consequently, if you are contemplating a logbook loan, it is always prudent to weigh all your available options.

What Exactly Happens When You Get a Logbook Loan?

Lenders who provide loans based on a vehicle's title evaluate the car's current market value to determine the loan amount. Most lenders will rely on CAP, widely recognised as the most accurate industry expert by car dealers, finance specialists, and motoring professionals nationwide. For classic and vintage vehicle valuations, lenders will use a select network of industry experts who will review the key facts, as well as research your vehicle’s provenance, including original purchase documentation, service records, and private sale records, where applicable.

The logbook loan amount is capped at a certain percentage of your car's value, typically more than 65% of the trade value.

The approval time for a logbook loan will vary massively depending on the lender and the type of legal document used to secure the loan, the location, and whether the logbook loan lender operates digitally. Currently, loans typically range from several hours to several days.

How Does a Bill Of Sale Fit Into A Logbook Loan?

The bill will also serve as proof of the transaction by including details like the vehicle details, time, place, and amount of the loan.

The borrower, however, will have to give up the V5C logbook and, frequently, the spare key. Upon signing the two contracts, the borrower relinquishes all rights to the vehicle and transfers them to the lender.

If this is done within 7 days, the Bill of sale will be valid after being stamped at the Royal Courts of Justice. Additionally, borrowers have few options for legal redress when dealing with a Bill of Sale.

Importantly, if the borrower misses two payments, the lender is given the right to reclaim the collateral without a judicial order.

It's important to note that while a Bill of Sale is legally recognised in England, Wales, and Northern Ireland, in Scotland it is not and is not used.

When the borrower pays off their Logbook Loan, the Bill of Sale that was used to secure the loan no longer applies, and ownership of the car is returned to the borrower.

How Do HP Agreements Fit into Logbook Loans?

The new 21st Century Logbook Loan is now secured against the car through a Hire Purchase Agreement in accordance with the Consumer Credit Act, but the borrower still gets full personal use of the car throughout the loan's term. This contrasts with the original Logbook Lenders, who used the Bill of Sale Act of 1882 as collateral for a loan on a vehicle. In addition, the Hire Purchase is based upon more recent legislation and offers the borrower greater protection from repossession. Also importantly, hire purchase documents can be signed remotely without the need for a company agent to come to the borrower’s home to sign the documents. was one of the first direct lenders to introduce the Hire Purchase Logbook Loan. is a trusted and reputable lender in the UK, specialising in V5 Loans, Car Pawn brokering and other forms of Vehicle Equity Release. Unlike traditional Logbook Loan providers, they don't use a Bill of Sale but rather a more modern Hire Purchase agreement for our transactions. When it comes to borrower service, prioritises its reputation and honesty above all else. complies with the Consumer Credit Trade Association's "Code of Practice" as a responsible lending institution, and it is fully accredited by the Financial Conduct Authority.

Does Scotland allow logbook loans?

Although logbook loans are offered in England, Wales, and Northern Ireland, they are not accessible to borrowers in Scotland. That's because bills of sale aren't binding in a Scottish court of law. Loans advertised as logbook loans in Scotland are hire purchase or conditional sale agreements governed by the Consumer Credit Act, which may provide more consumer protections than those afforded by logbook loans taken in the rest of the United Kingdom.

Are Logbook Loans High Rates of Interest?

The interest rates on logbook loans are higher compared to other loan options such as a high street bank, and other secured and unsecured lenders. However, they represent a real option for borrowers who may not be able to access these lenders due to their credit score or other reasons. Borrowers must be aware of lenders’ additional charges and set-up costs as well as early redemption charges. Please make sure you fully understand this cost fully before proceeding. Also, If payments are missed or the car is repossessed, there may be additional fees assessed.

Due to the high-interest rates, logbook loans should be considered a last resort. Before settling on a secured loan, you should investigate all your other financing options, such as unsecured loans that don't necessitate collateral.

Are Logbook Loan Available With A Bad Credit Score?

Logbook lenders will now check applicants' credit histories, so those with less-than-perfect scores can still qualify for a loan, may not qualify for a loan. Logbook lenders are aware that they have the legal right to repossess the car if the borrower defaults on the loan payments. Because of this, they may be willing to extend credit to borrowers who would typically be rejected for being too high of a risk. However, with the new FCA borrower charter coming into effect in late 2022, lenders must ensure they consider a borrower affordability first and foremost before approving loan, this is more important than the credit check.

What Is the Maximum Loan Amount For A Logbook Loan?

A logbook loan value is determined by two individual elements. Firstly, the car value. The value of your vehicle and individual lenders’ lending criteria and company standards will determine how much can be borrowed with a logbook loan. Loan amounts from logbook lenders usually range from £500 to £50,000 and lenders like will lend up to £150,000. Although borrowers will be limited to borrowing no more than a percentage of the car's value.

The second and perhaps the most important is the borrower’s affordability. All lenders are regulated by the FCA and have a duty of care under the new Borrower Charter to ensure loans are affordable. All lenders will insist upon a full hard credit report, and the provision of a full affordability assessment to understand the borrower’s income and ongoing and specifically any financial commitments. To make a full and proper assessment, the lender will ask the borrower to provide the last 3 months’ bank statements before a loan amount can be agreed.

In most instances, the maximum loan amount for a Logbook Loan will be determined and reduced due to affordability despite the car having adequate value.

How Can the Borrower Pay Back a Logbook Loan?

All lenders provide their borrowers the opportunity to repay weekly or monthly repayments in accordance with the contract. It’s also worth noting, the borrower can specify a weekday or a day in the month for the repayment to leave the account. The lender must accommodate this to ensure the borrower has the best opportunity to maintain the loan repayments without putting them under pressure.

All Logbook Loans are regulated under the consumer credit Act of 1974 and as such every borrower has the legal write to cancel their Logbook Loan agreement within 14 days. If the agreement is cancelled, the borrower must return any monies borrowed within 30 days of notifying their lender, plus any accrued interest up to the date in which the repayments is made.

Beyond the 14-day cancellation period, the agreement is then legally valid for the agreed term. There is a possibility that every borrower will not want to hold the loan for the full term and will need to settle their loan early. In most cases, the borrower can prepay a logbook loan regardless of the agreed-upon term, though doing so may incur fees.

It is crucial that you fully comprehend the repayment terms of a logbook loan.

In addition, every Borrower can make an unlimited number of capital overpayments. On receipt of a capital overpayment, the lender will reduce the original loan principle by this amount and then recalculate the loan repayment commencing from the next repayment due date.

Is The Borrower Responsible for The Car Whist I Have a Logbook Loan?

Yes, under the terms of the agreements, the borrower must tax, comprehensively insure and maintain the vehicle for the duration of the agreement. The borrower is not allowed to sell the vehicle without the approval of the lender. A finance marker will be placed on the vehicle and will be removed once the final payment is made.

Can a Borrower Take Two Logbook Loans on one Car?

No, only one Logbook Loan is permitted on a single car. Once a Logbook Loan has been paid out by a lender, a finance marker will be placed on HPI to make other lenders and potential purchasers aware there is outstanding finance on the car.

Do Financed Vehicles Qualify for Logbook Loans?

If a loan is almost paid off, some lenders will provide a logbook loan. It is also contingent on the approval of the logbook lender and the current finance being paid off from the proceeds of the new loan before the remaining balance can be paid to the borrower.

If A Borrower Can’t Pay a Logbook Loan, What Will Happen to The Car?

If a borrower defaults on the logbook loan payments, the lender will issue a "default notice," giving 14 days to bring the account up to date. The borrower must not ignore the lender's communication or the fact there having trouble making debt payments.

Lenders have the legal right to take back collateral and sell it if payments are not made on time. If a bill of sale is recorded, it can go straight to the borrower without going through the courts.

If the proceeds from the sale of the vehicle are insufficient to pay off the debt, the borrower is responsible for the remaining balance. The lender must reimburse the borrower for any surplus value above the loan amount if the car is sold.

Are a logbook Loan suitable for Borrowers on Welfare Payments?

There is a chance that some lenders will issue a logbook loan to borrowers on benefits, but only if it can be proved that the monthly payments won't put the borrower into financial hardship. There may be other options available, such as budgeting loans or advances from the government, please investigate those before settling on one.

Be aware not to put too much strain on the finances, as missing loan payments could result in the repossession of the car.

How to Apply for a Logbook Loan

Apply for a logbook loan over the internet or, in some cases in a shop with brick-and-mortar lenders. Make sure the provider of logbook loans s licenced by the Financial Conduct Authority before you give them your title (FCA).

Make sure the lender is a member of the Consumer Credit Trade Association (CCTA), a trade group that enforces standards for how CCTA members treat their borrowers. (LOYC) is a direct FCA-authorised UK leading ‘Logbook Loan’ Lender. They provide proven and preferable Logbook Loan solutions for people looking to raise cash quickly, including same day, from their vehicles. They are currently the ‘UK’s No1 Trusted Logbook Loan Lender’ on Trustpilot, with our borrower 5 Stars reviews to our borrowers so you can refer in complete confidence. Apply online at or call 0333 577 5000 to speak to an expert loan consultant.