Logbook Loans Greater Manchester are so named because you are going to be required to hand over your car’s V5 logbook as security for the borrowed funds.
Nonetheless you will retain the use of your motor vehicle, although officially the financial institution will own it until you have fully repaid the loan.
Logbook Loans Greater Manchester – How much can you borrow?
The amount of money that can be loaned depends on the value of your car and is usually around 60% of the car’s trade value, but it can be higher. Logbook loans for older cars tend to be more tough secure.
The amount is usually between £500 and £50,000 but obviously also be based upon the customer’s capacity to make the payments.
Also, the borrower will have to be over 18 years old, be the lawful owner of your vehicle with no outstanding finance. Over the term of the loan, the vehicle must also be covered by insurance, taxed and possess a valid MOT.
What you need to take into account before applying for Logbook Loans Greater Manchester.
A loan against your auto is known as a high-risk finance option, because of the really high-interest rates charged by such loan providers. Interest levels may vary between 100% and 400% APR, rates which could even make credit card companies blush.
They are aimed towards end users who have low credit scores or no credit history and as a consequence, are unable to secure loans from the high-street bankers or other mainstream lenders. If you don’t keep up the loan installments the logbook loan lenders have the ability to take your motor and sell it to recoup the outstanding balance due.
Logbook Loans Greater Manchester – What are the risks?
The loan company demands the customer to sign a contract which gives them the legal right to take the vehicle without needing to obtain a court order and resell it. The majority of borrowers are usually not completely aware of the ramifications of signing these agreements. Also, there is hardly any consumer protection for the consumer.
Also, it is worth noting that if the sale of the motor vehicle does not cover the outstanding finance, is still responsible for the account balance. Late or missed payments can incur a charge for chasing correspondence and telephone calls.
A few Logbook Loans Greater Manchester do not carry out appropriate credit report checks on the borrower as the loan product is a guaranteed loan against your automobile, so they have little risk. Nearly all also neglect to do adequate affordability checks to be sure the consumer can make the monthly payments. The net consequence of this is that many fail to make the monthly payments and fall even deeper in debt along with losing their motor vehicle. This could certainly damage your credit rating even further.
So it is better to consider other options prior to deciding to resort to this kind of financing. Hopefully, shortly all such financial institutions will need to be fully authorised by the FCA. This will certainly provide some degree of protection for customers.
In today’s financial climate, lots of people in the UK are finding that they have low credit ratings and in many cases through no fault of their own. In this scenario, some are refused loans from the mainstream finance institutions and other lenders. Therefore they see logbook loans as the only feasible option for emergency loans.
Here are several things to watch out for if you are determined to arrange this type of loan. Initially you need to get an estimate from a variety of Logbook Loans Greater Manchester. Virtually all go with the first logbook money offer they obtain which is a big mistake. Next compare Logbook Loans Greater Manchester quotes as this will guarantee that at the very least you get the best rate of interest and terms around.
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