Logbook Loans Ramsdens are so called simply because you will be asked to surrender your auto’s V5 logbook as security for the loan.
However you will retain the use of your car or truck, however actually the lender will own it until you have fully payed off the loan.
Logbook Loans Ramsdens – How much can you borrow?
The total that can be loaned is determined by the value of your car and is in most cases about 60% of the vehicle’s trade value, however it can be higher. Logbook loans for older motors are more difficult to obtain.
The total amount is usually between £500 and £50,000 but certainly also depend upon the applicant’s ability to make the repayments.
In addition, the borrower should be over eighteen years of age, be the lawful owner of the vehicle without any outstanding finance. Over the term of the loan, your car will also need to be covered with insurance, taxed and also have a valid MOT.
What you need to realise before applying for Logbook Loans Ramsdens.
A loan against your vehicle is known as a high-risk financing option, due to the extremely high-interest rates charged by such financial institutions. Interest levels may vary between 100% and 400% APR, rates that would even make credit card companies blush.
They are targeted at consumers who have low credit ratings or virtually no credit history and therefore, cannot secure financing from the high street financial institutions as well as other mainstream lenders. If you fail to continue the loan payments the logbook loan lenders have the legal right to seize your motor and sell it to recoup the outstanding balance.
Logbook Loans Ramsdens – What are the risks?
The finance company requires the customer to sign a legal contract which gives them the ability to take your vehicle without needing to obtain a court order and resell it. Many borrowers will not be fully aware of the implications of signing these kinds of agreements. In addition, there is little or no customer protection for the customer.
Also, it is important to note that if the sale of the automobile doesn’t cover the outstanding finance, is still responsible for the balance. Past due or missed monthly payments may well incur a charge for chasing correspondence and telephone calls.
A few Logbook Loans Ramsdens never do correct credit checks on the consumer as the finance is a collateralized loan against your car or truck, therefore they have little financial risk. Many at the same time neglect to do correct affordability inspections to ensure the customer can make the repayments. The net consequence of all of this is usually that many fail to make the repayments and fall even deeper in debt in addition to losing their vehicle. This could certainly damage your credit rating even further.
It is therefore far better to consider all other alternatives before you decide to resort to this sort of financing. With a little luck, soon all such personal loan providers will need to be fully authorised by the FCA. This should offer some degree of security for clients.
In the present financial climate, many individuals in the UK are finding that they have low credit ratings and in many cases through no fault of their own. In this situation, lots of people are refused loans from the traditional banking institutions and other lenders. Consequently they see logbook loans as the only practical option for urgent funding.
These are some things to watch out for should you be determined to arrange this type of loan. Initially you really need to get an estimate from a selection of Logbook Loans Ramsdens. Nearly all choose the first logbook money offer they obtain which is a big failing. After that compare Logbook Loans Ramsdens rates because this will make sure that at the very least you will get the best rate of interest and terms around.
Do It Yourself Debt Repair – Click Here