Logbook Loans Greengates are so called because you will have to surrender your car or truck’s V5 logbook as security for the financing.
Nonetheless you will retain the use of your car, nevertheless technically the loan originator will own it til you have fully repaid the loan.
Logbook Loans Greengates – How much can you borrow?
The amount of money that can be loaned is dependent upon the value of the vehicle and is in most cases around 60% of the car’s trade value, but it can be higher. Logbook loans for older motors will be more tough obtain.
The total amount is generally between £500 and £50,000 but needless to say also depend upon the applicant’s ability to make the repayments.
In addition, the borrower should be over eighteen years of age, be the legal owner of the car with no outstanding finance. Within the term of the loan, your vehicle should also be covered by insurance, taxed and have a valid MOT.
What you have to take into account before applying for Logbook Loans Greengates.
A loan against your car is regarded as a high-risk financial option, because of the very high-interest rates imposed by such loan companies. Interest rates may vary between 100% and 400% APR, rates that might even make credit card companies blush.
They are targeted at consumers who have low credit ratings or virtually no credit history and for that reason, are not able to obtain financing from the high-street bankers or any other mainstream lenders. If you can’t continue the loan repayments the logbook loan lenders have the legal right to seize your motor and sell it to recover the outstanding amount owed.
Logbook Loans Greengates – What are the risks?
The financing company requires the client to sign a legal contract giving them the authority to take your car without the need to obtain a court order and re-sell it. Virtually all borrowers may not be completely aware of the effects of signing such contracts. In addition, there is little or no buyer protection for the debtor.
It is also important to note that if the sale of the automobile doesn’t cover the outstanding finance, is still responsible for the account balance. Overdue or missed payments could incur a charge for chasing correspondence and telephone calls.
A number of Logbook Loans Greengates never complete correct credit rating checks on the borrower as the finance is a guaranteed loan against your vehicle, so they have very little potential risk. Nearly all likewise fail to do proper affordability inspections to ensure the customer can make the repayments. The net results of all of this is usually that many fail to make the payments and fall even deeper in debt as well as losing their car or truck. This may damage your credit rating even more.
Therefore it’s wise to consider various other alternatives before you resort to this kind of financing. With any luck, before long all such lenders will need to be fully sanctioned by the FCA. This would offer some degree of security for clients.
In today’s economic climate, many individuals in the UK are finding that they have low credit scores and in many cases through no fault of their own. In this position, nearly everyone is refused finance from the high street banks and other lenders. For this reason they view logbook loans as the only feasible alternative for urgent loans.
Here are several things to consider if you’re determined to arrange this kind of finance. Initially you really need to get a quotation from a range of Logbook Loans Greengates. Many opt for the first logbook money quotation they receive which is a huge failing. After that compare Logbook Loans Greengates rates as this will guarantee that as a minimum you get the best rate of interest and terms around.
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