Life does not always wait until your current loan is paid off. The boiler packs in, the car needs work, or a bill turns up that you were not expecting. If you already have a logbook loan with us, you might be wondering whether you can borrow a little more against the same vehicle rather than starting from scratch.
Sometimes you can. Here are the answers to the questions customers ask us most about topping up.
Can I top up my logbook loan with Logbook Money?
A top-up may be possible, but it depends on your circumstances. It is not automatic, and we look at every request individually. There are two things you need before we can consider it:
- Your account must be up to date. If you have missed payments or are in arrears, we will not be able to offer more borrowing. If you are behind, please talk to us about that first.
- Your loan must have been running for at least six months. We never offer a top-up in the first six months of a loan.
Meeting both of these does not guarantee a top-up. It just means we can look at your request.
Why can't I top up in the first six months?
A loan should be the right size from the start. If someone needs to borrow again soon after taking out a loan, that can be a sign the original amount was not quite right, or that money is getting harder to manage. Waiting at least six months means you have a track record of repayments and gives both of us a clearer picture of whether more borrowing makes sense.
How does a top-up work?
Get in touch through our contact page and tell us how much extra you need and what it is for. We then look at your request much like a new application. Expect us to:
- Check your repayment history on your current loan.
- Look at your income and outgoings again, which may mean reviewing up-to-date bank statements and a call from one of our underwriters.
- Consider what your vehicle is worth now. Cars lose value over time, so the figure may be lower than when you first borrowed. Our guide to loan to value explains why that matters.
If we can help, we will explain how the top-up would be set up, what your new repayments would be and the total amount repayable before you sign anything. You can check the representative example on our logbook loan calculator.
Things to think about before you ask
Borrowing more on top of an existing loan is a big decision. Be honest with yourself about these questions:
- Do you really need it? Could you cover the cost another way, such as a payment plan with the company you owe, savings, or help from a local scheme?
- Can you afford the extra? Higher repayments, or repaying for longer, both mean paying more interest overall.
- What if things change? Think about how you would manage if your hours were cut or another cost came up.
- Is this a pattern? If you are topping up to keep up with other debts, more credit may make things harder, not easier.
Logbook loans are a costly way to borrow, and borrowing more increases the amount secured on your vehicle. This article is general information, not financial advice. If you are using credit to cover everyday bills or other debts, please speak to a free adviser at StepChange, National Debtline or Citizens Advice.
What if I would rather pay off my loan early?
You can settle your loan early at any time and receive a rebate on interest. Once it is repaid, ownership of the vehicle comes back to you. If you would like a settlement figure, just get in touch. Our article on the life of a logbook loan covers what happens at each stage, from your first quote to your final payment.
Your car may be repossessed if you do not keep up repayments on a loan secured against it.
