Logbook Loan Hagley Road are so designated simply because you will be required to give them your car’s V5 logbook as security for the borrowed funds.
However, you will retain the use of your car, however officially the financial institution will own it til you have completely paid back the loan.
Logbook Loan Hagley Road – How much can you borrow?
The amount of money that can be loaned depends on the value of your vehicle and is normally around 60% of the car or truck’s trade value, but it can be higher. Logbook loans for older cars will be more difficult to secure.
The amount is typically between £500 and £50,000 but certainly also depend upon the applicant’s ability to make the repayments.
Furthermore, the borrower is required to be over 18 years, be the lawful owner of the vehicle with no outstanding finance. During the term of the loan, the vehicle must also be covered with insurance, taxed and also have a valid MOT.
What you need to know before applying for Logbook Loan Hagley Road.
A loan against your motor vehicle is known as a high-risk financing option, because of the really high-interest rates demanded by such financial institutions. Interest levels can vary between 100% and 400% APR, rates that would even make credit card issuers blush.
They are targeted at users who have low credit scores or virtually no credit score and so, are not able to get finance from the high-street lenders or other mainstream lenders. If you can’t maintain the loan repayments the logbook loan lenders have the authority to seize your motor and sell it to recover the outstanding balance.
Logbook Loan Hagley Road – What are the risks?
The financing company demands the customer to sign a binding agreement which gives them the authority to repossess the car with no need to apply for a court order and re-sell it. Many borrowers may not be fully aware of the implications of signing these kinds of contracts. Furthermore, there is almost no customer protection for the debtor.
Additionally, it is important to note that if the sale of the vehicle doesn’t cover the outstanding loan, is still responsible for the balance. Past due or missed repayments may well incur a charge for chasing correspondence and telephone calls.
A number of Logbook Loan Hagley Road do not carry out appropriate credit report checks on the client as the loan product is a collateralized loan against your vehicle, therefore they have very little associated risk. Many at the same time neglect to do adequate affordability checks to make sure the client can make the payments. The net result of all of this is that many fail to make the monthly payments and fall even deeper in debt besides losing their car or truck. This may damage your credit score further.
So it is best to consider all other solutions before you resort to this sort of financing. Hopefully, soon all such personal loan providers will have to be fully sanctioned by the FCA. This will deliver some degree of security for customers.
In the present fiscal climate, many people in the UK are finding that they have low credit scores and in many cases through no fault of their own. In this position, lots of people are refused financing from the mainstream banking institutions and other lenders. As a result they see logbook loans as the only practical alternative for emergency loans.
These are some things to watch out for should you be determined to arrange this type of funding. First you should get a quotation from a variety of Logbook Loan Hagley Road. Nearly all go with the first logbook money quotation they receive which is a big blunder. After that compare Logbook Loan Hagley Road quotations as this will assure that at the very least you will get the best rate of interest and terms available.
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