Unencumbered Mortgages
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
- 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.
What is an unencumbered mortgage?
An unencumbered mortgage is a mortgage secured against a property that has no existing mortgage or secured loan.
This type of mortgage allows you to borrow against a property you own outright. When you own your property outright with no existing mortgage, an unencumbered mortgage allows you to release equity by taking out a loan secured against your home.
Because the property is owned outright, there is no lender with a legal charge over it. Taking out an unencumbered mortgage creates a new first charge against the property, allowing you to unlock some of the equity you've built up.
This product is available as a first charge mortgage only.
How does an unencumbered mortgage work?
If you've paid off your mortgage or purchased your property outright, you may be able to borrow against its value.
The amount you can borrow depends on factors including:
- The value of your property
- Your income and affordability
- Your credit profile
- Our lending criteria
The funds can then be used for a variety of purposes, subject to eligibility.
Criteria for an unencumbered mortgage:
- You must own your property outright and be able to prove full, unmortgaged ownership
- Just like a standard mortgage, we will evaluate your income, employment status, regular outgoings, and credit history to ensure you can securely pay off the new debt
- Our max LTV (loan-to-value) for unencumbered mortgages is 80%
- First charge mortgage only.
Why choose an unencumbered mortgage?
Common scenarios
You've already paid off your previous mortgage
You've finished paying your mortgage but now need to raise capital without selling your home.
You're planning home improvements
Use the equity in your property to fund an extension, renovation or other improvements.
You're buying another property
Release equity from your existing home to help fund the purchase of another property.
You want to help your family
You may wish to release equity to help a child with a deposit, support a family member financially or cover significant life events.
You're consolidating existing debts
If appropriate for your circumstances, you may be able to combine eligible debts into one monthly mortgage payment.
You purchased your home outright
If you bought your property without a mortgage, an unencumbered mortgage can allow you to access some of the value tied up in your home.
Can I still get an unencumbered mortgage with bad credit?
Yes, subject to eligibility. We will run a credit search followed by a manual review to assess your credit history, affordability and full circumstances.
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.
Authorised and regulated by the FCA
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.
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
What does 'unencumbered' mean?
An unencumbered property is one that has no outstanding mortgage or secured loan registered against it.
How much can I borrow?
The amount you want to borrow depends on the type of loan you choose. If you are looking to borrow a large amount of money, a secured loan may be a better option. It’s important to mention that you should only borrow as much as you need to need to, the more you borrow the more interest you will pay.
There are other factors that can affect the amount you can borrow from a lender:
- Your income
- Existing debts
- Lender’s LTV ratio
- Your credit score
- Direct debits or other loans
Can I get an unencumbered mortgage if I own my home outright?
Yes. If you own your property outright, you may be able to take out a mortgage secured against it, subject to eligibility.
What can I use the money for?
Many customers use an unencumbered mortgage for home improvements, purchasing another property, debt consolidation or other eligible purposes.
Will my property be used as security?
Yes. Like any mortgage, an unencumbered mortgage is secured against your property.