Customer FAQs - your questions answered

A homeowner loan uses your home as security against the amount of money you borrow (known as providing ‘collateral’).

Using a property as security usually lets you borrow money at a lower interest rate, and to borrow larger amounts of money. Your property must have enough equity to cover the value of your loan – it is important to remember that the property may be at risk if you do not keep up with any repayments secured against it.

Using your property as security may also help you get a loan, even if you don’t have a great credit rating. If you would like to check your credit rating, you can carry out a free, online credit check here.

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.

The cost of a homeowner loan depends on several factors, such as:

• The amount of money you borrow – the money you borrow you will have to repay over your mortgage term. As mentioned before, how much you are able to borrow is dependent on the equity in your property and your personal circumstances.
• The length of your loan term – typically for a homeowner loan you can borrow over a period of 3-30 years, however this is dependent on your personal and financial circumstances. It’s important to note that if you borrow over a longer period, the overall cost of credit will increase as you will be paying interest for longer.
• Interest rate – Lenders charge borrowers interest on the money you borrow, so you will repay the amount you’ve borrowed plus the interest. The rate of interest you’ll be charged varies according to the term and size of your loan.
• Loan fees – usually when taking out a homeowner loan, there are arrangement fess that are charged by the lender for setting up and agreeing to the loan. If you were to apply for a homeowner loan via a broker, you may have to pay an additional broker fee.

As you’d expect, you can’t get a homeowner loan without owning a property. If you rent your home you would need to look at applying for an unsecured loan that doesn’t require an asset to secure the money to.

Typically, this type of loan is used by homeowners who want to borrow a larger sum of money. This is because the money you borrow is secured to your property, unlike an unsecured loan.

No loan is 100% safe, as failure to repay will result in a poor credit history. Borrowing against your home can be risky, but only if you don't pay back the money. A homeowner loan can be good if you wish to borrow larger amounts, get a better interest rate or overcome a poor credit history, but it essential to make sure that you can afford the repayments as you home may be at risk of repossession if you can’t.

If you are sure you can afford the repayments, a homeowner loan can help overcome a poor or bad credit history, and may allow you to get lower interest rate than an unsecured loan and potentially save money. But borrowing against your home can be risky. If you struggle to meet the repayments, you will be risking the property. But repossessing a property is often the very last resort for a lender, they will always try and help reach an agreement with you before things get that far.

No. A homeowner loan is different to a mortgage. A homeowner loan is taken out in addition to your mortgage, but your mortgage takes priority over a homeowner loan. This means that if your house is repossessed to pay off a debt, the mortgage lender will be paid first. Then the lender who provided the homeowner loan will get what they are owed. If any money is left over, you will get it.

Homeowner loans are frequently referred to as secured loans because you must be a homeowner to use your house as collateral.

Whilst all homeowner loans are secured loans, not all secured loans are homeowner loans. It depends on the asset used as collateral. Almost anything of significant value can be used as collateral to secure a loan. Common assets include residential or commercial real estate, vehicles, cash savings, and investment portfolios.

All secured loans give the lender similar rights to repossess your home if you don't keep up repayments.

How we measure good or bad credit scores really depends on the credit reference agency you are using. 
In the UK, there are three main ones: Experian, Equifax, and TransUnion - and each uses a different scoring range. So a “bad” score on one scale might look totally different on another.

It’s worth checking online or on the credit reference agency’s app, what your score is and where it lands on their individual scale from poor to excellent.

Secured loans make it easier for people with lower credit scores to borrow money. Loan providers are more likely to lend money to someone with bad credit if they put up a security, since they will have something in return if you don't pay them back.

If you have bad credit you may have to pay a higher interest rate, but this will depend on your situation. If you do have credit issues, you should always think whether getting into more debt is the best thing to do.

Always start by making certain you can afford your monthly repayments. If you don’t make your payments regularly and on time, you risk damaging your credit score and losing your home. Setting up a direct debit can be the best option for many people and always make sure that you stick to your budget and do not overspend.

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.

Whether you have bad credit or not, all good lenders will consider your personal circumstances and your ability to comfortably afford to repay the loan. This type of loan uses your home (or another property you own) as security. This means that your home or property could be repossessed if you do not repay the loan.

Because you are providing security against the debt, lenders such as ourselves can be more flexible regarding who they lend to. However, this also means there is more risk for you, so even though you may be able to get the loan, it is essential that you make certain you can afford the monthly repayments.

We help clients with a variety of different credit profiles. it all depends what sort of adverse credit you have and how recent it is.

Your credit score won't decrease after a soft search, however it could after a hard credit search is completed. However, a hard credit search only happens if you choose to proceed with the loan. It's important to bear in mind that if your credit score does decrease it will only be temporary. If you consistently make your payments on time it's likely your credit score will get better.

Rather than having multiple debts to repay, a debt consolidation loan puts all of your existing debts into one payment, which makes budgeting easier to manage. Having one repayment per month means that you are more likely to meet monthly payments on time therefore protecting your credit score.

On the other hand, if you miss frequent mortgage payments then you are at risk of being set back further and your credit score being affected.

Another drawback of a debt consolidation loan is that they can include additional fees and payments, so it is important to consider the potential additional expenditure that you may encounter when enquiring for a debt consolidation loan.

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.

Yes, you can. Buy to let secured loans are designed specifically to use rental properties as security. Your acceptance for the loan will be based on a number of different factors such as the equity in the property and the affordability of the loan i.e. your ability to make 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 have invested in a property and rent it 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 loan.

The best way is to take out a buy to let secured loan. These loans use a rental property as security against the amount you borrow. This means that you may be able to borrow a larger amount of money, get a longer repayment period, or overcome an issue with your credit. It’s important to remember that any property that you use as security could be repossessed if you fail to repay the loan.

Home improvement loans offer homeowners the opportunity to borrow funds specifically for property enhancements. Benefits include potential property value increase and tailored loan terms for renovations.

Home improvement loans function like most other loans. You borrow a specific amount, then repay it with interest over an agreed period. The unique aspect is that the funds are earmarked for property enhancements.

Generally, yes. Funds from a home improvement loan can be used for various renovations, from minor updates to significant overhauls. However, always check the loan's terms to ensure your project is covered.

The primary difference lies in the loan's purpose. While home improvement loans are tailored for property enhancements, personal loans can be used for any purpose, from home improvements to debt consolidation.

Qualification criteria vary, but lenders typically consider your credit score, income, the value of your property, and the amount of equity you have.

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.

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 to be short-term solutions, typically lasting up to 12 months. so they usually have higher monthly interest rates than traditional mortgages.

However, they are designed for speed and flexibility, not long-term borrowing.

Getting a secured loan over remortgaging may be considered a better decision under these circumstances:

• If your financial situation has changed
• If you need funds quickly
• If you’re facing ERCs (early repayment charges) for remortgaging
• If your credit score has declined
• If your mortgage lender won’t allow additional borrowing
• If you have a preferential rate on your first charge mortgage

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

No. A secured loan is different to a mortgage. A secured loan is taken out in addition to your mortgage, but your mortgage takes priority over a homeowner loan. This means that if your house is repossessed to pay off a debt, the mortgage lender will be paid first. Then the lender who provided the secured loan will get what they are owed. If any money is left over, you will get it.

Yes. Bridging loans are designed to be short-term solutions, typically lasting up to 12 months. so they usually have higher monthly interest rates than traditional mortgages.

However, they are designed for speed and flexibility, not long-term borrowing.

All you need to do is 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 one of our team on 0800 980 6274.

Yes. In the UK, most residential first charge mortgages are regulated by the Financial Conduct Authority (FCA).

Yes. Your mortgage lender is allowed to refuse a first charge loan or mortgage against your property if they feel it would make them lose money on the sale if they should ever need to repossess it. Generally, this would only happen if you were trying to borrow more money that what was available in equity.

You should always make sure you have enough equity in a property before applying for a first charge mortgage or loan. However if you are unsure, the lender should be able to check for you. It’s worth noting that a lender could also refuse a first charge on other grounds such as affordability and credit history.

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.

Enquire for a first charge mortgage, it 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 typically used for buying a home.

Because the lender has priority over the property, first charge mortgages generally offer lower interest rates compared to other forms of borrowing, such as personal loans or credit cards.

The mortgage is secured against the value of the property, reducing the lender’s risk. This can mean more affordable monthly payments and lower overall interest costs throughout the life of the mortgage.

First charge mortgages can be easier to obtain for borrowers with a strong credit history and reliable income. These mortgages allow buyers to spread the cost of purchasing a home over a longer period, helping to make home ownership more manageable and accessible.

Using your home as security could help you borrow more money, get a lower interest rate, or even overcome a poor or bad credit history.

Second charge mortgages are a useful source of borrowing for many people, as they can be used for a variety of different purposes.

They can be used to fund home improvement projects, whether these are essential property repairs or bigger projects with the aim to enhance a property or to increase the property value.

Some people take out second mortgages to help consolidate their debts. It could be that someone has multiple debts that they have accumulated over a longer period of time, and they intend to combine them into one loan with a lower repayment cost. In doing so, it can help people understand their debt better as it helps simplify their monthly payments.

Or they can simply be used to raise funds for other purposes that an individual does not have the savings to cover at the time.

Enquire for a second charge mortgage, it 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, if you are using it to consolidate debt or pay off other debt at a lower interest rate or with more affordable monthly repayments. Using the equity in your home to reduce your costs or overall debt can be a good idea, but only if you can afford the new repayments as your home will be at risk if you cannot.

No. A solicitor will not be required for a second charge mortgage application. However we would always recommend researching any loan thoroughly and making certain that it is comfortably affordable. Always budget responsibly, and ideally have a plan of action in case of financial difficulty.

Yes. Your mortgage lender is allowed to refuse a second charge loan or mortgage against your property if they feel it would make them lose money on the sale if they should ever need to repossess it. Generally, this would only happen if you were trying to borrow more money than what was available in equity.

You should always make sure you have enough equity in a property before applying for a second charge mortgage or loan. However if you are unsure, the new lender should be able to check for you. It’s worth noting that a lender could also refuse a second charge on other grounds such as affordability and credit history.

Second charge mortgages are regulated by the FCA, however if someone bought an investment property and does not live in it, then it falls into the “non-regulated” category. Second mortgages raised against these types of properties would fall into this category.

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, loan term, our representative APR etc. 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. This is because applicants that have a good credit history are considered ‘less risk’.

All loans have risks if you do not repay them. Although second mortgages offer many benefits, they have the added risk of losing your home if you do not repay the loan.

Interest rates for a second mortgage will usually be higher than for your first mortgage.

But a second mortgage will usually be repaid over a shorter period of time, and the amount you borrow is usually much less. So even if the interest rate is higher, you may repay less interest in total than with your first mortgage. The most important thing is to make certain that your monthly repayments are affordable. The amount you repay each month will depend on the amount you borrow, the interest rate, and how long you borrow the money for i.e. the length of the repayment period.

Our second mortgage rates vary based on your needs and circumstances and we offer repayment periods from 3 years up to a maximum of 30 years. But before we recommend the best second mortgage for you, we will always make sure it will suit your budget, and that the monthly repayments are comfortable and affordable.

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.

We’re all for people following their dreams and ambitions, but 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 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…

We won’t be able to answer these questions for you, so make sure you consider everything before committing.

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 of money you can borrow will depend mostly on how much equity is in your property, and the amount that you can afford to repay. Credit history will also be taken into account, but second mortgage lenders can usually be more flexible with credit history, because the loan uses your home as security.

This sounds good, but it is essential to make sure that you can afford the repayments, because your home will be at risk if you can’t.

It depends on the type of mortgages you have, but there will usually be a solution that won’t stop you from moving house.

Depending on the house values involved, you may be able to repay both mortgages when you sell your property. This would allow you to take out a single mortgage on the new property. It’s important to consider early repayment charges in this situation, so make sure you have all the information before making any decisions.

If your first and second mortgages are ‘portable’, you will be able to transfer both of them to your new home, without needing to change to new lenders. However our second mortgages are not portable.

You can use a second mortgage to pay for anything legal! But most people use them to pay for things like home improvements and debt consolidation.

But you must remember, consolidating debts like personal loans and credit cards, means you’ll be switching from unsecured debts to a debt that will put your home at risk of repossession. Also, even though your monthly payment may be lower, a second mortgage can run up to 30 years, so you may end up repaying more money in total.

Our team of experts will discuss your needs and circumstances, and make sure any loan they recommend is the very best option for you.

Getting a secured loan over remortgaging may be considered a better decision under these circumstances:

• If your financial situation has changed
• If you need funds quickly
• If you’re facing ERCs (early repayment charges) for remortgaging
• If your credit score has declined
• If your mortgage lender won’t allow additional borrowing
• If you have a preferential rate on your first charge mortgage

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

Yes, you can. Central Trust considers your existing debts, like credit cards. If your overall income and affordability look good, we may still lend—even if you have credit card balances.

You can borrow up to a certain percentage of your home's worth. Lenders call this loan-to-value (LTV). It varies depending on each lender’s criteria and the worth of your property.

After you repay your old mortgage, you start repayments on the new loan over your chosen term.

Costs usually vary depending on valuation fees, legal fees, early repayment fees (if applicable) and arrangement fees (if your new deal charges one).

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. Some mortgages charge an early repayment fee if you leave before the term ends.

You can switch anytime, but often people do at the end of a fixed-rate deal or to get better terms. The best time is generally 3 to 6 months before your current fixed-rate deal ends to lock in a new rate.

The process typically takes 4 to 8 weeks, depending on how fast your paperwork is processed and surveyors report.

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. 

If your finances are organised, it’s straightforward. At Central Trust, our online mortgage application and support team make it smooth, even if your credit isn’t perfect.

It can be a good idea if you're moving to a lower rate, reducing monthly payments, repaying debts, or funding your plans. But there are costs involved, so it’s worth checking everything fits your budget before deciding.