According to the recently released data, tens of thousands of homeowners are facing huge interest on their mortgages every year. Since, the exceptional circumstances that are caused by the credit crunch are further worsening so, attaining lower APR is first on the priority scale.
However, in order to attain lower interest rates, people need not required to ponder for a way. People could easily avail larger amount just by pledging the logbook of a car (secured on car) at lower interest rates.
Nowadays, even a college student owns a car and so could easily rub out the financial worries. These loans are based on the legislation dating back to 1878. Here, the logbook of a car, which is considered to be the most important document of a car. It includes the details of VIN number, engine number, current registration mark and the borrower's name of course.
In UK loans against car are especially designed for the vehicle holders who seeking some monetary assistance. Since, it is a secured loan so the logbook of a car is pledged as a collateral. Looking on the other side of the coin it is the vehicle itself which is pledged but it can also be used simultaneously.
Loan against car in UK are provided by only those lenders who are registered under OFT (Office Of Fair Trading) and certainly offers the 50% of the trade value of the car. They always use a bill of sale, a contract under which the borrower is supposed to sold an item, typically a car to the lender on a decided date. Moreover, it is because of such agreement that hands over the right to possession of the car into lender's hand.
However, here the borrower needs to be bit cautious and should always make the repayments on time. In simpler words, as long as the payments are met, the borrower can easily continue to have use of a car and then then lender returns the outright ownership to the borrower at the end of the loan period.
But if the borrower is late with the payments, the lender who is termed as a owner for the loan period gets the right to seize the asset without even going to court.
This type of loan can also be obtained by bad credit holders such as bankruptcy, CCJs, IVA, missed payments, defaults etc. however, to be on a safer side lenders also demand the borrower to fill up an income and expenditure form in order to prove that there are financially capable of making the repayments.
Nevertheless, there are some things that has to be considered legally while attaining loan against car UK. They are as follows:
- To stand on eligibility criteria, the logbook of a car should be in the name of the borrower.
- The car should not be more than 8 years.
- The borrower should have a regular source of income.
- The vehicle should not be backed by any side payments and should not be hold back by any other finance and
- the car should be taxed and insured properly.
Therefore, the borrower carrying all the above mentioned criteria, then he/she could easily attain the higher amount at lower APRs.
