Welcome to Machar Loans
Sometimes despite our best attempts to keep track of our income, expenses and to properly manage our money, we can often still get into financial trouble. This can come in the form of unexpected expenses that can hit very hard, especially if we have no savings to fall back on.
And let’s be honest, in today’s day and age, who actually can afford to save any money anymore. Since the worldwide financial crisis of early 2008, people across the globe have struggled financially. It is no different in the United Kingdom. What this has led to is more and more people needing loan products just to get by. The more they get into debt, the deeper they slip into financial trouble and reports have shown there are more people in the United Kingdom today with bad credit records than ever before.
So when that emergency hits, you can forget about going to a high-street bank to secure a loan – they will just turn you away and the chances are that if you are reading this, you have already faced that embarrassing experience.
But luckily, there is help. There are a number of no credit report loan products available to the man on the street suffering from bad credit. One such loan is a V5 or logbook loan. This is secured by using your vehicle, motorcycle, campervan, truck or caravan as a form of security against such a loan. The great news however, is that you only sign over your V5 document or logbook, which means you can still use your vehicle each and every day.
Not only that but a logbook loan application is quick, simple and likely to be approved in less than twenty-four hours which should make it your first port of call should you need money in a hurry.
Let’s take a closer look at exactly how a logbook loan works
In all honesty, there could be nothing simpler. First, we will need to take a look at the vehicle which will act as security for your loan. There are a few things you need to know about this, however. Firstly, unless it is an older sports car or luxury vehicle, it needs to be no more than 10 years old. We will access your vehicle to see what condition as well as to determine how much mileage it has covered. This will all have an effect on the loan we will offer you. We will only ever offer you 50% of what your vehicle is worth. So as an example, if your car is worth £50 000, the most we will loan to you is £25 000.
This loan is fixed for a certain period, for example over 12, 18, 24, 36 or 48 months. Please note, we often get asked if the loan terms can be extended at points further down the line. It cannot. This is for the simple reason that your vehicle depreciates in value each month. Once you have paid off the last instalment of the loan, the logbook for your vehicle is returned to your safe keeping.
So what’s the catch?
Well, there isn’t one really as long as you pay your instalments every month. Should you default, we have the right to sell your vehicle to recoup our costs. Rest assured however, we do not do this the first time you miss an instalment and it really is our last resort if you continually fail to pay. We will do everything in our power to locate you and explain the situation as well as your need to pay your missed instalments. If we are forced to sell your vehicle, any money that we make extra through the sale will be paid into your bank account. The only time there is a risk with this type of loan is if you do not make your payments and ultimately, that is up to you.
I am interested in this loan product. What do you need from me?
Well, first and foremost we must assess your vehicle. This, together with your monthly income, helps us to determine the amount that we can safely loan to you without putting you under too much financial pressure.
We will also need a number of documents to help process the loan, so be sure to bring them along and we can process your loan quickly and have the agreed loan amount in your account in a matter of 24 hours.
We will need your identification document, a letter from your landlord (if you are renting) or from your bank (should you own a property) to prove your address, wage slips for the past three months (so we can determine your average income), proof of comprehensive insurance on the vehicle, the latest MOT certificate for the vehicle and of course, the most important document, your vehicle V5 document.
Who pays insurance on the vehicle during the duration of the loan?
As you will be using the car, you will still need to pay comprehensive insurance on the vehicle during the duration of the loan. Why? Well, we need to make sure that we protect our investment, especially from weather damage, theft or perhaps even accidents.
For more information visit Just Logbook Loan to find out how this versatile loan option can work for you.