New Logbook Loans - The Fairer Alternative

LoanOnYourCar.com is the UK’s leading New Logbook Loan specialist. If you’re considering taking out a Logbook Loan, consider our ‘New Logbook Loan’ - a quicker, cheaper and more flexible Logbook Loans alternative.

Our priority is to provide our customers with the perfect flexible lending solution to meet their exact needs and requirements. We allow the borrower to settle their loan early, penalty-free or make overpayments and pay less interest.

Settle Your Loan Early, Penalty-Free

The first thing to consider is that LoanOnYourCar.com ONLY calculates our interest using the fairer and cheaper ‘Flat Rate’ model as opposed to using the expensive ‘Front Loaded’ model.

Why is Fixed-rate better?

Fixed Rate

Fixed Rate is the percentage of interest calculated based on the original amount borrowed and the cost of interest remains the same across each month and year of the repayment period.

Flat interest rates have the following advantages:

• Easy to calculate and track
• Require no calculations to blend the loan principal and interest into a level payment - as long as the repayments are made on time, the original principal is repaid evenly over the term period.

It is regarded as the fairer model for calculating and paying interest every month on reducing outstanding balance.

Front Loaded

Front-loading of interest is more common than we might think. It's used by many loan providers of personal loans, car finance, mortgages and across the whole finance sectors. It is generally preferred by lenders as it generates more interest.

Most of the interest you owe is front-loaded, meaning that the vast amount of the cash you pay is for interest and relatively little is toward repaying the balance. Towards the end of the loan term, the opposite is true, and most of your payment will go toward the principal balance with little interest repaid

We Encourage Our Borrowers to Settle Early

LoanOnYourCar.com is committed to treating its clients fairly. That is why we actively encourage you to settle your loan early at any time during the term, penalty-free, so you will save money on the interest repayments.

You can request an updated settlement figure at any time. To repay your loan early, simply contact our Accounts team. You will receive the settlement figure amount the same day and that will be valid for 28 days.

The Good News – If you settle the loan early, you will only pay interest for the time you had the loan, including the 28 days’ notice period. The interest will stop immediately when the settlement figure amount is repaid, and you will NOT be liable for the remaining interest.

This is not the case with other Logbook Loans lenders that may offer Front Loaded, high rates of interest, a minimum 3-month loan period and shorter loan terms which can often increase monthly repayments.

And don’t forget, many Logbook Loan Lenders will often impose fees for settling up the loan and early redemption penalties if the borrower wants to settle early!

Make Overpayments and Pay Less Interest

A significant advantage of our New Logbook Loan is the ability to make unlimited capital overpayments of any amount. On receipt of a capital overpayment, we will reduce the original loan principle by this amount and then re-calculate your new loan repayments commencing from the next repayments due date.

You are able to make overpayment by calling our expert Collection Team to make a direct payment by bank transfer. The team will instantly advise you of your new monthly repayment and adjust your Continuous Payment Authority [CPA ].

Apply Now For An Instant Decision in Principle

If you want a quicker, more flexible and proven loan experience our first-class service and new Logbook Loan product for yourself:

1. Enter your vehicle registration online and we will call you back within 1 hour* to complete your loan application; or

2. Call us on 0333 577 5000 and speak to one of our expert loan consultants. We can offer advice on rates, repayments and our terms and conditions.