Customer FAQs - your questions answered

What counts as a "good" or "bad" credit score depends on which credit reference agency you're using. In the UK, the three main agencies — Experian, Equifax, and TransUnion — each use a different scoring range, so a "bad" score on one scale might look quite different on another.

It's worth checking your score directly through the relevant agency's website or app to see exactly where it falls on their individual scale, from poor to excellent.

Secured loans may be an option for people with lower credit scores who are looking to borrow money. Because the loan is secured against an asset, such as your home, some lenders may be willing to consider applicants with a poor credit history who may not qualify for certain unsecured loans.

If you have bad credit, you may be offered a higher interest rate, although this will depend on your individual circumstances and the lender’s assessment of your application. If you have existing credit problems, it’s important to consider carefully whether taking on additional borrowing is affordable and appropriate for your circumstances.

Always make sure you can afford the monthly repayments before taking out a secured loan. Missing or making late payments could negatively affect your credit history and, because the loan is secured against your property, could ultimately put your home at risk. Setting up a Direct Debit can help you make your repayments on time, but it’s still important to budget carefully and make sure you can afford the payments throughout the loan term.

The benefits of using your home as security against a loan include:

• Interest rates for homeowner loans can be lower than unsecured loans.
• You may be able to get a homeowner loan despite a poor or bad credit score.
• You can usually borrow more money than with an unsecured loan.
• You could get a longer repayment period than with an unsecured / personal loan (but remember: the longer you take to pay off the loan, the more interest you pay in total).

Even though using a property as security will often help you get a lower interest rate, it’s important to remember that the exact interest rate of your loan will depend on your personal circumstances.

Yes, it may still be possible to get a loan with bad credit. Because this type of loan uses your home (or another property you own) as security, we can be more flexible about who we lend to than an unsecured lender might be — but it also means your home could be at risk of repossession if you don't keep up repayments.

Even if you're approved, it's essential to make sure you can comfortably afford the monthly repayments before taking on this kind of borrowing.

Yes, we help clients with a variety of credit profiles. It all depends on what sort of adverse credit you have and how recent it is, so the best way to find out is to get in touch and talk it through with our team.

A soft credit search won’t affect your credit score. However, a hard credit search may have a temporary impact on your score. A hard search is usually carried out when you formally apply for a loan, rather than when you simply check your eligibility.

It’s also worth remembering that any impact from a hard search is typically temporary. Making your loan repayments on time and managing your credit responsibly can help your credit score recover over time.

Rather than having multiple debts to repay, a debt consolidation loan combines your existing debts into a single monthly payment. This can make your finances easier to manage and, if the new monthly payment is lower than your previous repayments, could also give you more room in your monthly budget.

Having just one repayment each month may make it easier to keep up with payments on time, helping to protect your credit score. However, missing payments could still put you further behind and negatively affect your credit score.

Another potential drawback is that debt consolidation loans may come with additional fees and charges. A lower monthly payment does not necessarily mean you will pay less overall, particularly if the loan is repaid over a longer period. It is therefore important to consider the total cost of the loan, including interest, fees and charges, before applying.

The type of documentation you’ll need differs depending on your situation. However most lenders will initially ask you about the following:

• Proof of income
• Property information
• Credit history

This depends on the lender you apply with and what type of credit score they would be willing to accept. Unlike other lenders, we consider all credit histories. We understand that life happens and there’s more to your story than your credit score or your recent pay slip.

Home improvement loans let homeowners borrow funds specifically for property enhancements. Key benefits include the potential to increase your property's value, along with loan terms that can be tailored to suit renovation projects.

Home improvement loans work like most other loans: you borrow a set amount and repay it with interest over an agreed period. What sets them apart is that the funds are specifically intended for property improvements.

Generally, yes — funds can typically be used for a wide range of renovations, from minor updates to major overhauls. That said, it's always worth checking your loan's specific terms to make sure your particular project is covered.

The main difference is purpose. A home improvement loan is specifically intended for property upgrades or repairs, while a personal loan is more flexible and can be used for almost anything — including home improvements, debt consolidation, or other expenses.

Qualification criteria vary by lender, but typically factors considered include your credit score, income, the value of your property, and how much equity you have available.

Both options are available. Fixed rates remain the same throughout the loan term, whereas variable rates can change based on market conditions.

Repayment periods vary, ranging from short-term (like 1-5 years) to longer-term options (such as 10-15 years or more). You can choose to repay a home improvement loan in between 3 and 30 years with Central Trust.

Yes, it's possible to have more than one home improvement loan, but it's crucial to manage multiple debts carefully and ensure you can meet all repayments.

A mortgage is a loan secured against your property. It allows you to borrow money, usually to buy a home or raise funds against the equity you've built up. The loan is repaid over an agreed term through monthly repayments, and your home may be repossessed if you do not keep up these repayments.

Our mortgage products can help you:

• Remortgage an existing property
• Raise capital against your home's equity
• Raise capital against an unencumbered property
• Refinance specialist residential and buy to let borrowing.

No. A secured loan is not a mortgage. It's a separate loan taken out in addition to your existing mortgage, secured against the same property. Your mortgage always takes priority: if your home were repossessed, the mortgage lender is repaid first, then the secured loan lender, with any remaining funds returned to you.

No — a homeowner loan is different from a mortgage. It's taken out in addition to your mortgage, and your mortgage always takes priority. If your home were ever repossessed to repay a debt, the mortgage lender would be paid first, followed by the homeowner loan lender, with any remaining funds going to you.

The right option depends on your circumstances. A first charge mortgage replaces any existing mortgage on your property or can be taken out against an unencumbered property. A secured loan (also known as a second charge mortgage) allows you to borrow against your home's equity without replacing your current mortgage. If you're looking to remortgage or raise capital, we'll assess your circumstances to help determine which option best suits your needs.

Paying off your mortgage early with us is very simple. All you need to do is call us on 0800 980 6274 to request a final settlement figure. This is simply the amount of your current mortgage balance plus any interest that's due up to the date of settlement, plus any early repayment charge or exit fee that's due. These can vary depending on your mortgage product's terms and conditions.

Please note that we cannot accept payments for this through our online payment system. If you'd like to settle your mortgage early, please contact a member of our team on 0800 980 6274 to obtain a settlement figure.

To apply for a mortgage you must be a UK homeowner. We do not accept tenants. If you jointly own the home you must apply with the other person.

A mortgage is a loan secured against your property. It allows you to borrow money, usually to buy a home or raise funds against the equity you've built up. The loan is repaid over an agreed term through monthly repayments, and your home may be repossessed if you do not keep up these repayments.

Our mortgage products can help you:

• Remortgage an existing property
• Raise capital against your home's equity
• Raise capital against an unencumbered property
• Refinance specialist residential and buy to let borrowing.

A second mortgage can be used for most legal purposes, but people most commonly use them for things like home improvements and debt consolidation.

It's important to remember that consolidating debts like personal loans and credit cards means switching from unsecured debt to borrowing that's secured against your home — so if you're unable to keep up repayments, your home could be at risk of repossession. It's also worth bearing in mind that although your monthly payment may be lower, a second mortgage can run for up to 30 years, so you could end up repaying more in total over the life of the loan.

Our team will take the time to understand your needs and circumstances, and help you find a loan option that's suitable for your situation.

No — a homeowner loan is different from a mortgage. It's taken out in addition to your mortgage, and your mortgage always takes priority. If your home were ever repossessed to repay a debt, the mortgage lender would be paid first, followed by the homeowner loan lender, with any remaining funds going to you.

No. A secured loan is not a mortgage. It's a separate loan taken out in addition to your existing mortgage, secured against the same property. Your mortgage always takes priority: if your home were repossessed, the mortgage lender is repaid first, then the secured loan lender, with any remaining funds returned to you.

The right option depends on your circumstances. A first charge mortgage replaces any existing mortgage on your property or can be taken out against an unencumbered property. A secured loan (also known as a second charge mortgage) allows you to borrow against your home's equity without replacing your current mortgage. If you're looking to remortgage or raise capital, we'll assess your circumstances to help determine which option best suits your needs.

No. A remortgage replaces your existing mortgage with a new one, either with your current lender or a different lender. This can be used to secure a new rate, release equity from your property, or both.

A second mortgage, also known as a secured loan or second charge mortgage, allows you to borrow additional funds against your property's equity while keeping your existing mortgage in place. This can be beneficial if you're on a competitive mortgage rate or would incur early repayment charges by remortgaging.

A first charge residential mortgage is typically used to purchase a property. In contrast, a second charge mortgage is an additional loan secured against the same property. In both cases, the property serves as collateral, meaning it can be used to recover the debt if the borrower fails to maintain repayments.

A second charge mortgage is another name for a loan secured against the equity in your property. These mortgages are taken out in addition to your first mortgage, hence “second charge”.

Yes. In the UK, most residential mortgages — including both first charge mortgages and second charge (secured) loans — are regulated by the Financial Conduct Authority (FCA) as regulated mortgage contracts. This means lenders must follow FCA rules on responsible lending, including assessing affordability, treating customers fairly, and providing clear information before you commit to a loan.

Yes. Lenders have a responsibility to lend responsibly, which includes protecting you from taking on debt that could put you at unnecessary risk. If a lender feels that approving a first charge mortgage or loan could leave them (and you) exposed — for example, if there isn't enough equity in the property to cover the loan safely — they're entitled to decline the application.

This most commonly comes up when someone is trying to borrow more than the available equity supports. Beyond equity, a lender may also decline based on affordability or credit history, as part of that same duty to look out for your best interests.

If you're unsure how much equity you have, you don't need to work this out alone. A lender can check this for you before you commit to an application.

You do not always need a solicitor for a first charge mortgage. In some cases, we will handle the legal work through an appointed legal firm as part of the process. Where required, a solicitor or licensed conveyancer may be instructed to ensure the charge is correctly registered and all legal aspects are completed properly.

Because the mortgage is secured against your home, missing repayments could lead to the lender repossessing and selling the property to recover the debt. First charge mortgages usually last between 20 and 35 years, meaning borrowers need to be confident they can keep up with repayments over a long period. If the mortgage has a variable interest rate, monthly payments may increase if interest rates rise. If property values fall, you could end up owing more than your home is worth, which can make selling or remortgaging difficult.

First charge mortgages can be suitable in some situations, particularly for consolidating existing debt into a single loan that may offer lower interest rates or more manageable monthly repayments. However, because your home is used as security, it is important to carefully consider affordability and long-term costs.

If repayments are not maintained, your home could be at risk, so it should only be considered if you are confident you can sustain the new payment structure.

Enquiring about a first charge mortgage is a straightforward process, which can be completed online by following our application process or by calling one of our qualified advisors using the number at the top of this page.

Our advisors will be able to discuss your enquiry and establish whether or not we can help secure the funds you need.

First charge mortgages are most commonly used for purchasing property, but they can also be used for other major financial purposes where a property is used as security.

Common uses include:

•    Remortgaging - replacing an existing mortgage with a new first charge mortgage, often to secure a better interest rate.
•    Property improvements - funding major renovations or extensions that may increase the property’s value.
•    Debt consolidation - combining multiple debts into a single secured mortgage with potentially lower monthly payments.
•    Large personal expenses - such as funding education, major life events, or large purchases.

Because the mortgage is secured against property, lenders usually assess factors such as property value, income, credit history, and affordability before approving the mortgage.

A second charge mortgage can help you borrow more, secure a lower interest rate, or even work around a poor or bad credit history. It's a flexible source of borrowing that people use for a range of purposes, including:

• Home improvements: from essential repairs to larger projects aimed at enhancing the property or boosting its value
• Debt consolidation: combining multiple debts built up over time into a single loan with a lower overall repayment cost, which can also make monthly finances easier to manage and understand
• Raising funds for other needs: covering costs that savings alone wouldn't stretch to.

As with any second charge borrowing, it's worth remembering that your home is used as security. If you're unable to keep up with repayments, you could be putting your home at risk, so it's always worth making sure any new borrowing is comfortably affordable before you go ahead.

Enquiring about a second charge mortgage is a straightforward process, which can be completed online by following our application process or by calling one of our qualified advisors using the number at the top of this page.

Our advisors will be able to discuss your enquiry and establish whether or not we can help secure the funds you need.

Yes, particularly if you're using one to consolidate other debts or replace higher-interest borrowing with a lower rate or more affordable monthly repayments. Using the equity in your home to reduce your overall costs or debt can make sense — but only if you're confident you can afford the new repayments, since your home is at risk if you can't.

No — a solicitor isn't required for a second charge mortgage application. That said, it's always worth researching any loan thoroughly and making sure it's comfortably affordable before committing. Budgeting responsibly and having a plan in place for how you'd cope in case of financial difficulty is good practice with any secured borrowing.

Yes. A lender can refuse a second charge loan or mortgage if they judge that approving it could leave them exposed to a loss on the property — most commonly, if you're trying to borrow more than the equity available supports. This is part of a lender's broader responsibility to lend responsibly and look out for your interests, not just their own risk.

Beyond equity, a lender may also decline a second charge application on grounds like affordability or credit history.

If you're unsure how much equity you have, you don't need to work this out yourself — the new lender should be able to check this for you as part of the application process.

Second charge mortgages are regulated by the Financial Conduct Authority (FCA). The exception is investment properties that the owner doesn't live in themselves; a second mortgage raised against a property like this falls into the "non-regulated" category instead.

The rate you are offered on a second charge mortgage will depend on your personal circumstances such as your credit history, and takes into consideration criteria requirements and loan term. As with any representative APR, the rate you're offered may differ from our advertised rate depending on your circumstances. Lenders that have stricter criteria and do not accept poor credit will likely have a lower rate than those lenders that accept applicants with poor credit.

Lenders with stricter lending criteria, who don't accept applicants with poor credit, will typically offer a lower rate than those who do. This is because applicants with a good credit history are considered lower risk, and lower-risk lending allows lenders to offer more competitive rates.

An unencumbered property is one that has no outstanding mortgage or secured loan registered against it.

Yes. If you own your property outright, you may be able to take out a mortgage secured against it, subject to eligibility.

Many customers use an unencumbered mortgage for home improvements, purchasing another property, debt consolidation or other eligible purposes.

Yes. Like any mortgage, an unencumbered mortgage is secured against your property.

Bridging loans can seem like a lifeline when you need cash fast, but you should be aware of the risks before making any decisions. Bridging loans come with high interest rates and hidden fees that can pile up quickly, and their short repayment schedules leave little room for delays. Because the loan is secured against property, a drop in market value could leave you owing more than your home is worth.

To qualify for a bridging loan with us at Central Trust, the key requirement is a clear exit strategy (such as a sale or refinance) supported by suitable property security, typically up to 75% LTV on a first charge and 70% on a second charge. We take a flexible, case-by-case approach, using tools such as AVMs, instant indicative quotes, e-signatures, and in some cases 24-hour completions with free legals on regulated bridging.

Credit history and income are considered alongside automated affordability and electronic income verification where needed, with scope to accept non-standard income and adverse credit depending on the overall strength of the case. Approval is driven primarily by the security and exit plan rather than traditional credit or income criteria.

Without a clear exit plan - whether selling, refinancing, or moving to a traditional mortgage - what starts as a temporary solution can spiral into serious financial trouble, damage your credit, or even cost your property. Bridging loans work best for those who know exactly how and when they will repay.

Yes. A residential bridging loan is always secured against a property.

• A first charge bridging loan is secured as the main mortgage on the property.
• A second charge bridging loan sits behind an existing mortgage, allowing you to raise additional funds without replacing your current loan.

Yes. Bridging loans are designed as short-term borrowing, typically lasting up to 12 months, so they usually have higher monthly interest rates than a traditional mortgage. This reflects what they're built for: speed and flexibility rather than long-term borrowing. They're best suited to short-term needs where you have a clear plan to repay the loan within the term.

Yes — buy-to-let secured loans are specifically designed to use rental properties as security. Your acceptance will depend on factors like the equity available in the property and the affordability of the loan, i.e. your ability to keep up with the monthly repayments.

To be eligible for a buy-to-let mortgage, you must typically be aged 18 or over, and the mortgage term must usually end by around your 80th birthday (depending on the lender). You must also own a rental property that can be used as security in case you fail to make repayments.

Yes. If you own a property that you rent out to a third party, you may be able to qualify for a buy-to-let secured loan. This type of loan uses your investment property as security against the borrowing.

The most common route is a buy-to-let secured loan, which uses your rental property as security against the amount you borrow. This can allow you to access a larger loan amount, a longer repayment period, or help overcome credit issues.

It's important to remember that any property used as security — including a rental property — could be repossessed if you fail to keep up with repayments.

All loans carry risk if repayments aren't kept up, but second mortgages carry an extra risk on top of that: because the loan is secured against your home, missing repayments could ultimately put your home at risk of repossession. Second mortgages can offer real benefits like access to funds at a lower rate than unsecured borrowing, but it's important to weigh that against the fact that your property, not just your credit score, is on the line if things go wrong.

Yes - interest rates on a second mortgage are usually higher than on your first mortgage. However, second mortgages tend to be repaid over a shorter period and for a smaller amount, so the total interest paid can sometimes work out lower than on your first mortgage, even at a higher rate.

What matters most is affordability. Your monthly repayment depends on three things: how much you borrow, the interest rate, and the length of the repayment term. Repayment periods typically range from 3 to 30 years, and any recommendation should always be built around what's comfortably affordable for your budget - not just the headline rate.

Yes. You can use a second mortgage to start a business, or to grow your existing business, but you should consider all of your options first.

Before you secure a loan against your property, make sure you consider everything:

• How much money do you need to start or invest in your business? Will a second mortgage definitely cover it?
• How profitable will your business be in the long-term? If it doesn’t work out, you will still need to repay your second mortgage, or you could risk losing your home.
• Once you start your business, will the cash flow allow you to cover both mortgage repayments? Remember, you’ll have two to cover now.

These are important questions to think through carefully, and our team is happy to talk you through your options if that would help. Ultimately, the decision on whether a second mortgage is right for your business needs to be yours, based on your own financial circumstances and risk appetite.

At Central Trust, we can provide loans for existing businesses, however we cannot provide loans to new start-ups.

To get a second mortgage, you must have an existing mortgage.

The amount you can borrow will depend mostly on how much equity is in your property and how much you can afford to repay. Credit history is also taken into account, but second mortgage lenders can usually be more flexible on this, because the loan is secured against your home.

However, it's essential to make sure you can afford the repayments, as your home will be at risk if you can't.

It shouldn't stop you from moving, but there are a couple of things to be aware of.

Our second mortgages aren't portable, so rather than transferring to your new home, you'd typically repay both your first and second mortgage in full from the sale proceeds, then take out a new mortgage on your new property. It's worth checking whether your existing mortgage(s) have any early repayment charges before deciding, so you have the full picture of costs involved.

Because a second charge lender also needs to formally agree to the sale, it's worth factoring that extra step into your moving timeline too.

A second mortgage can be used for most legal purposes, but people most commonly use them for things like home improvements and debt consolidation.

It's important to remember that consolidating debts like personal loans and credit cards means switching from unsecured debt to borrowing that's secured against your home — so if you're unable to keep up repayments, your home could be at risk of repossession. It's also worth bearing in mind that although your monthly payment may be lower, a second mortgage can run for up to 30 years, so you could end up repaying more in total over the life of the loan.

Our team will take the time to understand your needs and circumstances, and help you find a loan option that's suitable for your situation.

Whether a secured loan or remortgage is more suitable will depend on your circumstances, financial situation and borrowing needs. A secured loan may be worth considering if:

• Your financial circumstances have changed
• You need to access funds quickly
• You would face early repayment charges (ERCs) if you remortgaged
• Your credit score has declined
• Your existing mortgage lender won’t allow you to borrow more
• You have a preferential rate on your existing mortgage that you want to keep

Each option has different costs, risks and eligibility requirements, so it’s important to consider the overall cost and whether the repayments are affordable before making a decision.

You can find out more on this topic from our 'What is the difference between secured loans and remortgaging?' blogpost article.

Yes. We take your existing debts, including credit card balances, into account as part of our overall assessment. As long as your income and affordability meet our lending criteria, having credit card debt won't automatically rule you out.

Lenders express how much you can borrow as a percentage of your property's value, known as loan-to-value (LTV). We lend up to 80% of your home's value, up to a maximum of £250,000, including any amount still owed on your existing mortgage — so the actual amount you can remortgage depends on your property's value and how much equity you have in it.

When you remortgage, you take out a new mortgage (usually with better terms or a lower rate) and use it to pay off your existing mortgage in full. Your new lender settles the old mortgage directly, and from then on you make repayments on the new loan, over whatever term you've agreed with them.

This is often done to get a better interest rate, release equity from your home, or consolidate other debts, and it typically involves a new property valuation and affordability check as part of the application.

Costs can vary, but typically include valuation fees, legal fees, arrangement fees (if applicable), and early repayment charges from your existing lender (if applicable). It's worth asking for a full breakdown of fees before committing, so you know the total cost of switching upfront.

Yes. You’ll need a solicitor or conveyancer to handle legal checks, contracts, and registering the switch.

Yes, you can remortgage early — but check your current deal for early repayment charges (ERCs), as many mortgages charge a fee if you switch before the fixed term ends.

You can remortgage at any time, but most people do so at the end of a fixed-rate deal, or when a better rate becomes available. The best time is generally 3 to 6 months before your current deal ends, so you can lock in a new rate in advance.

The process typically takes 4 to 8 weeks, depending on how quickly your paperwork is processed and the surveyor's report is completed.

This is a good idea if you think your property has increased in value. A fresh valuation helps your lender know your home’s current worth. You can ask your solicitor or mortgage advisor for a professional valuation. 

Remortgaging is generally straightforward if your finances are well-organised, as most delays come from paperwork or valuation timelines rather than the process itself. Our team can talk you through your options and support you through the application, including if you have credit issues that might make things trickier elsewhere.

It can be a good idea if you want to secure a lower interest rate, reduce your monthly payments, consolidate other debts, or release funds for something like home improvements. There are costs involved in remortgaging though, so it's worth checking these fit your budget before deciding.