Homeowner Loans
Borrow with us and you could receive your loan in a few weeks
Borrow up to £250,000
Flexible terms from 3-25 years
We consider all credit histories
Employed, self employed, pension and benefit income
We're a direct lender, so there are no hidden broker fees
Representative Example: A homeowner loan amount of £37,000 payable over 9 years on a fixed rate of 10.61% for the first 5 years, followed by a variable rate, currently 12.19%, would require 60 monthly payments of £569.20 followed by 48 monthly payments of £586.29. The total amount repayable would be £62,293.92, this includes interest, an arrangement fee of £1,998 and a processing fee of £499. The overall cost for comparison is 13.4% APRC representative.
How it works
Organising your finances can sometimes feel stressful, but we want to make it as easy as possible for you.
In just 3 simple steps you could have the money in your bank account. All you need to do is:
1: Enquire
Complete our quick and easy online enquiry form. Alternatively, you can speak to an advisor instantly by calling us or starting a live chat.
2: Your details
One of our qualified advisors will call you to discuss your enquiry and work out a monthly payment that meets your needs and circumstances.
3: We'll do the rest
We'll help you complete the paperwork and any other supporting documentation required.
What do our customers say?
You can relax knowing you’re working with a highly rated team. But don’t just take our word for it, visit our website and read our reviews – they speak for themselves.
What is a homeowner loan?
Homeowner loans let you borrow money using a property (usually your house or apartment / flat) as security against your loan.
Lenders can often be more flexible about who they give loans to if you use your home as security. As a result, people with adverse, poor or even bad credit histories are often able to borrow the money they need without the need to pay higher rates of interest that are sometimes associated with unsecured loans.
In order to secure a homeowner loan, you must be a homeowner or mortgage holder and there must be enough equity in the property being used as security to cover the loan. Our loans are also often called secured loans or second charge mortgages. Using your home as security against your loan can be a great way to get the cash you need, when you need it, and paying a lower rate of interest.
Even though using your home as security could help you borrow more money or overcome a poor credit history, it’s important to remember that your home may be repossessed if you do not repay the loan. Always make certain you can afford the monthly repayments and always budget for them each month.
Online homeowner loans
It couldn’t be simpler to apply for a Homeowner loan online with Central Trust…
Our simple online application form is quick and easy to complete and only needs the initial information needed to start your application. We only need some very basic information to get the ball rolling, so it only takes a moment to complete
Alternatively, you can enquire with us by calling 0800 980 6273 or speaking to us via live chat located at the bottom right of this screen.
Why choose Central Trust?
35 years' experience
We are one of the UK's longest established specialist lenders trading since 1988 giving us over 35 years' experience providing secured loans, homeowner loans and second mortgages.
Simple application process
You can call our team directly on 0800 980 6273 (Mon-Fri:8:00am-7:00pm /Sat:9:00 am-1:00pm) or you can enquire online at any time using our quick and easy online form.
All credit considered
We understand that life happens and there's more to your story than your credit score or recent pay slip. So if you have a less than perfect credit score we could still help.
Homeowner loan rates
The exact interest rate of a homeowner loan will vary depending on your personal circumstances.
The total cost and repayment periods of all loans will vary from company to company and will be based on how much you wish to borrow, your credit history and how much equity is in the property being used as security.
We will always offer you the best homeowner loan rates that we can, but it is important to remember that the interest rate we will be able to offer you may vary
We will always make sure that you can afford the monthly repayments before we agree your loan. Your home may be repossessed if you fail to repay your loan; however, we will always try to help you to ensure this is the last resort.
Here are some of the things that may affect the interest rate of your loan:
- How much equity there is in your property – there must be enough equity to cover the value of the loan secured against it
- Your income – it is essential that you can afford your repayments
- Existing credit agreements – existing debts will affect the amount you can afford to repay each month
- Credit score – this may affect the interest rate of the loan, we may still be able to help if you have bad credit
As with any loan, it’s important to understand that falling behind on your repayments could potentially impact your credit score, and in some extreme cases, could potentially put your home at risk if your loan is secured against it.
We will always try to ensure that your monthly repayments are affordable, however if circumstances change, we are here for you and will work to find a suitable solution.
Case studies
Home improvement loan
For an applicant with poor credit history.
Secured loan
For a self-employed client with limited trading history.
Debt consolidation loan
For an applicant with multiple lines of credit.
Bad credit homeowner loans
Homeowner loans aren’t just for people with good credit, we can also provide loans for applicants with adverse, poor or even bad credit histories…
If you have struggled with debt in the past, have a bad credit score or have previously been declined by lenders due to your credit history, it doesn’t mean that every lender will turn you down.
Whilst some lenders may not be able to assist people with bad credit, at Central Trust, we consider all credit histories, despite historic issues such as defaults, CCJ’s, missed payments and those on debt management plans.
Unlike other lenders, we look at the bigger picture.
There is no strict automation to our lending decisions. We take a common sense approach based on your specific case. A member of the team, NOT a computer, makes the final decision, every single time. We consider each application for a bad credit homeowner loan on an individual basis, so whatever your credit circumstances, we will try our very best to help you secure the home owners loan you want
Ready to enquire?
Talk to our qualified mortgage experts now
We are here to help
- Friendly UK based advisors
- Enquiring won't affect your credit rating
- Fast turnaround times 7-10 days is possible
- No phone menus - immediate contact from our advisors
- We are a direct lender, so we'll work with you from start to finish
Tara Evans
Head of Direct Sales
20 years at Central Trust
01923 280199
FAQ's
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.
Typically with homeowner loans you can borrow up to £250,000. However the amount you can borrow depends on the available equity that’s in your property.
Equity is the portion of your home that you own outright free from any mortgage, including your initial deposit and the money you’ve paid back. To work out how much equity you have in your home, simply subtract the amount you owe on your mortgage form the market value of your home.
Whilst homeowner loans can give borrowers the funds they need, it is important to note that mortgage offers are dependent on various factors. Every lender has different criteria that they use to work out your affordability as well as how much you could borrow.
As part of your homeowner loan application, lenders will complete an affordability check to assess your ability to repay the loan. It’s likely that they will ask you to provide evidence of your income and expenses including essential and non-essential out-goings.
You may even be asked about future plans, as this can sometimes impact your finances and ability to pay your mortgage repayments.
At Central Trust you can borrow up to a maximum of £250,000, with repayment terms from 3 to 25 years. It’s easy to enquire, simply fill out our application form, or call the number at the top of this page to speak to a qualified mortgage advisor.
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 3-25 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.