You could receive your loan in as little as 3 days!
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.
A second mortgage lets you borrow money using your home as security.
A second mortgage is an extra loan that runs alongside your existing mortgage, and the amount you can borrow will depend on the level of equity in your property. Because your home is used as security, it is very important to make sure that you can comfortably afford to repay the loan.
By using your home as security, lenders can be more flexible about who they lend money to, and how much you can borrow. This means that you may be able to borrow more money, get a lower interest rate, or even overcome a bad credit history. As good as this sounds, it is important to remember that second mortgage loans use your home as security, so it could be repossessed if you do not repay the loan.
This product is available as a second charge mortgage, subject to eligibility and our lending criteria.
As well as helping people with good credit, second mortgages can also be a great way for people with adverse, poor or even bad credit histories to get a loan.
If you have a mortgage but are finding it hard to get a loan, we may be able to help.
At Central Trust, we consider applications from people who may be experiencing credit issues such as missed payments, debt management plans, CCJs or defaults. Like most lenders, we do carry out a credit check, but we have a team of experienced people that will consider each and every application on its own individual basis. This means that whatever credit circumstances you may currently be experiencing, we will do our utmost to help you secure a second mortgage regardless of your credit report!
Remortgaging is when you switch your existing mortgage for a new one. A second mortgage is an additional loan taken out against your home that runs alongside your first mortgage.
When you remortgage, it could be with either your current lender or with a brand new lender. You would usually remortgage if you can get a lower interest rate, but some people also remortgage their home for a larger amount, as a way to borrow extra money.
If you borrow extra money by adding it to your first mortgage, you are likely to get a good interest rate, but the long repayment term may mean you repay more interest in total. You might also need to pay an early repayment charge on your existing mortgage.
A remortgage can also take a long time to complete, just like a first mortgage. So, if you need to borrow money quickly, a second mortgage may be a better option because they can be quicker to complete. We have been able to help customers complete a second mortgage in the UK in as little as two weeks!
The interest rate of your second mortgage will depend on the amount of money that you want to borrow, the repayment term, and other factors such as your credit history.
We can provide loans up to £250,000, and we are more flexible than most money lenders when it comes to your credit score. We will always try to get you the best interest rate possible and will only ever recommend a loan that suits your needs, and that you can afford to repay.
Find out what rate you could get and how to get a second mortgage loan - enquire below for a free, no obligation quote.
The equity in your home is simply the value of your home, minus the amount you owe on the first mortgage.
For example, if your home is worth £250,000 and there’s £100,000 left on the mortgage, you’ll have £150,000 in equity. You may not know the exact figures, but it’s best to have rough idea how much equity you have – that way you know whether the amount you want to borrow is realistic or not.
But don’t worry – you do not need to know the exact figures when you apply, we provide a valuation service for you as part of the second mortgage application process!
All loans have risks if you don’t repay them.
A second mortgage uses your home as security, which means that it could be repossessed if you don’t repay the loan.
This is why it is important to make sure that the monthly repayments of the loan are affordable, and to budget properly. Like all loans, missed payments may be recorded in your credit history, even if they do not result in repossession!
Fast and Simple Process
You could access funds within days by calling our team directly or enquiring online.
Nearly 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.
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We are committed to responsible lending, clear communications and good customer outcomes throughout the borrowing journey.
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.
Stephen Stone
2 years ago
Incredible company. Empathetic and supportive staff that know how to offer customers a package that suits them. I was fed up with automated systems from the standard banks. This company talk to you and help you find something to suit your circumstances. I cant thank them enough for how they helped me
Greg Erasmus
3 years ago
When I contacted Central Trust I had a very strict deadline to make a payment. Jenny was extremely helpful and informative and got the process started straight away. The whole way through I was kept informed at every stage of my application and any hiccups was swiftly dealt with. I can't thank Jenny, Tara and Stephanie enough for their help and professional service. Highly recommend.
Edward Mawby
3 years ago
I originally left a review that said I was not satisfied with the service provided, however after being in touch with Tara I felt she tried her best to get the answer we wanted. Unfortunately it didn't work out, but she left us feeling optimistic that we can go back in a couple of months time to try again. Thank you for doing your best to help!
Anglela Ferrante
3 years ago
What an absolute delight of a company. Following setback created by the mini budget, I was left in a predicament, central trust came to the rescue and provided an excellent swiftly process. I would highly recommend using them. I dealt with Jenny who couldn’t of been more proactive and helpful.
Gwenda Squire
6 years ago
Really friendly, professional service. Completed within a matter of days. Would highly recommend
David Cutler
6 years ago
Mostly good, gave me the wrong return address for a form that needed a signature witness which meant the form was lost and I had to go through the hassle of finding a witness again. Asked me to send a settlement figure which they had already received from me and had acknowledged receipt. But on the whole much more efficient, faster and more communicative than the bank who I applied to borrow the money from.
S RC
6 years ago
John Holden
6 years ago
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How does equity affect my mortgage?
When you’re applying for a second mortgage, lenders will look at how much equity you have in your home.
The more equity in your home, the more you may be able to borrow. A larger amount of equity may also help you get a lower interest rate, or to overcome previous issues with your credit history.
Are second mortgage interest rates higher?
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.
Can I get a second mortgage?
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.
Why get a second mortgage?
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.
Will having a second mortgage cause problems if I decide to move house?
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.
Can I use a second mortgage to start a business?
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:
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.