Bad Credit Secured Loans
You could receive your loan in as little as 3 days!
- Borrow from £10,000 to £250,000
- Flexible terms from 3-30 years
- We consider all credit histories, subject to criteria
- Employed, self employed, pension and benefit income
- Direct lender so no broker fees
Representative Example: A secured loan of £31,000 payable over 7 years on a fixed rate of 9.83% for the first 5 years, followed by a variable rate, currently 9.69%, would require 60 monthly payments of £553.17 followed by 24 monthly payments of £552.39. The total amount repayable would be £46,447.56, this includes interest, an arrangement fee of £1,999 and a processing fee of £499. The overall cost for comparison is 13.1% APRC representative.
Can you get a secured loan if you have bad credit?
Whether you have bad credit or not, specialised 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.
Our secured loan products are available as either a first or second charge mortgage, subject to eligibility and our lending criteria.
What is bad credit?
‘Bad’, ‘poor’ or ‘adverse credit’ can often be caused by the following:
- Accounts in default
- CCJ’s (county court judgement)
- Debt management plans
- Had IVA (individual voluntary arrangement) which is now cleared
- Cautions or restrictions against their property
- Missed payments (maximum of 2 within 12 months)
Whilst some lenders are unable to help with the above circumstances, Central Trust could offer loans for bad credit. We consider all credit histories and assess each case on its own individual merit.
What credit score is needed for a secured loan?
The credit score required to get a secured loan will vary from lender to lender. However, as long as the loan is affordable, you may be able to borrow money despite having a low credit score.
Everyone’s personal circumstances are different, including their credit score. When deciding who we can lend to we will look at your credit score, but we will also look at other things such as how much you can afford to repay each month, how much money you want to borrow and how much equity is in your property. For selected plans, your credit score is not considered as part of our eligibility assessment.
As long as you can comfortably afford the monthly repayments and there is enough equity in your home, we may still be able to lend you money even though you may have a low credit score. A poor credit score may mean that you have to repay a higher interest rate, however a secured loan may still be a cheaper option than an unsecured loan if you have a bad credit score.
How could we help?
Whilst we can help people with good credit, we can also provide secured loans to those with adverse, poor or even bad credit scores.
If you have previously been declined due to your credit profile or you don’t meet one lender’s criteria, it doesn’t mean that every lender will turn you down.
Whilst some lenders may not be able to assist, at Central Trust, we consider all credit histories. We can offer loans for people with CCJ’s, defaults, missed payments, or those on debt management plans.
We have over 35 years of experience helping customers find the right type of loan for their circumstances.
As a specialist lender, we can help those that have bad credit, previously turned down by high street lenders. Getting a secured loan shouldn’t feel impossible, and we want to help you raise the funds you need, whatever your plans may be.
These are subject to our criteria and underwriting standards.
Why choose Central Trust?
Fast and Simple Process
You could access funds within days by calling our team directly or enquiring online.
Over 35 Years’ Experience
We are one of the UK's longest established specialist lenders, so you can relax knowing you're dealing with an experienced team.
Regulated by the FCA
We work to uphold the FCA's standards through transparent and responsible practices. We provide legal and financial protections to ensure a safer and fairer borrowing experience.
Your Loan,
Tailored for You.
Consolidating debt? Paying for a large expense like home improvement or a wedding? We have you covered.
Unlike many other lenders, there is no strict automation to our lending decisions. Your application is assessed by our team, not by a computer.
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:
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.
Share
One of our qualified advisors will call you to discuss your enquiry and work out a monthly payment that meets your needs and circumstances.
Complete
We'll help you complete the paperwork and any other supporting documentation required. Everything can be completed electronically, or on paper if you prefer.
Ready to enquire?
Call an advisor free on:
0800 980 6273
- Friendly UK based advisors
- Enquiring won't affect your credit rating
- Fast turnaround time 7-10 days is possible
- Immediate contact from our advisors
- We are a direct lender
Can I take out a secured loan with bad credit in the UK?
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.
How does a secured loan with bad credit work?
A secured 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.
Benefits of a secured loan if you have bad credit
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.
Are secured loans a good idea?
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.
What questions could I be asked?
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 30 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.
Who are secured loans suitable for?
As you’d expect, you can’t get a secured 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.
What are the risks associated with secured loans?
Before taking out a secured loan, it's also important to be aware of any risks. Loans secured on houses have the same risk as other loans, including negative marks on your credit history if you fail to repay the loan, and additional charges for missed payments.
In addition, there is also the risk of losing your home if you cannot afford to repay your debt. This means that it is very important to consider these risks, and make certain that you can afford to repay the loan before you commit to it.
We will help you consider all the options we have available, and will always keep your best interests at heart before making any recommendations to you.
Is a secured loan the same as a mortgage?
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.
