Under what circumstances would your logbook loan application be rejected?

The general belief is that logbook loans are a sure bet. So entrenched is this belief that the mere suggestion that one’s logbook loan application could be rejected is frowned upon. However, the truth is, your logbook loan application could be rejected under the following circumstances:

If you are below the age of 18 years

So you are 16 or 17 years and wish to apply for a logbook loan? If yes, you can forget about getting approved as no UK logbook loan lender will even look at your application twice. The reason behind it is that the laws prohibit UK logbook loan lenders from entering into contractual agreements with individuals who are below the age of 18 years. Such an agreement is considered null and void and therefore cannot be enforced in a court of law should the applicant default on repayments.

If the car you set up as collateral is more than 10 years old

The rules are very clear as to the type of car you can set up as collateral. UK logbook loan lenders insist that the car should be in good condition and must have been on the road for a period not exceeding 10 years. In fact, it is the reason that UK logbook loan lenders insist on a Ministry of Transport (MOT) certificate before they can be approved for a logbook loan. The only exception to this rule is in cases where a UK logbook loan lender accepts vintage cars older than 10 years.

If the car you set up as collateral is not registered in your own name

In order for a car to be accepted as collateral when applying for a logbook loan, the requirement is that it must be registered in your own name. What this essentially means is that you cannot borrow a car from a colleague, a friend or even a sibling and use it as collateral to get approved for a loan. The car logbook must be in your own name. If you use a car not registered in your own name, your application will not be approved.

If you do not reside in the UK

UK logbook loans are strictly meant for individuals residing within the greater UK. It is for this reason that you must provide a copy of your identification document as well as produce utility bills to provide proof that you are a resident of the UK. If you come from outside the UK, you can be rest assured that your application will not be approved.

If your application is laden with errors of omission and commission

Your logbook loan application form must be filled with factual and correct information as requested by the lender. Failure to do so and you can be rest assured that your application will be declined. The information you provide must be truthful to the best of your knowledge.