Representative Example:

A secured loan of £20,000 payable over 5 years on a fixed rate of 9.00% would require 60 monthly payments of £435.90. The total amount repayable would be £26,154.00, this includes interest and a product fee of £999. The overall cost for comparison is 11.7% APRC representative.

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Second charge mortgage rates

The interest rate of a second charge mortgage depends on various different factors, including the amount of money you are looking to borrow, the repayment term and your personal circumstances like your credit history.

Second charge mortgage rates are usually lower than other forms of borrowing such as an unsecured loan, this is because the money is secured against your home.  

Most lenders will complete a soft and hard credit search to understand how much you could afford and your financial circumstances. Interest rates are likely to be higher for someone that has bad credit. This is because they are considered more of a risk due to their financial history.

However, as a specialist lender with flexible criteria we can help people with complex financial circumstances.

All applications, whether you have good or bad credit are considered on an individual basis - whatever your credit profile, we will do our best to help you get the secured loan you need.

At Central Trust, we will always give you the best possible interest rate. We will only ever recommend a product that meets your needs and circumstances, to ensure that you can afford to repay each month.

Customer Reviews

We take great pride in providing you with the very best service possible. Whether you need to borrow extra money for home improvements, to consolidate existing debts or for any other reason, our team of experienced, friendly advisors are here to help you.

We won't just be there for you during your application, we are here to help you throughout the entire life of your loan. So should you ever need to borrow some additional funds, or face any challenges at all that require our assistance, simply give us a call and we will be there for you.

As a result of our commitment to providing the very highest levels of service, we have received many fantastic reviews from both new and existing, long-term customers. If you want to borrow with confidence, simply take a look at our reviews page, or take a look at the many independent reviews we have received on TrustPilot.

Different types of second charge mortgage rates

Second charge mortgages can have two different types of interest rates, a fixed rate or a variable rate. It’s important to understand how interest rates work and how they can affect you

The rate you are charged by your mortgage lender will determine how much your monthly repayments will be, which also affects the amount you will pay back overall.

A fixed rate means you are charged a fixed amount of interest every month throughout the loan. This means that your monthly repayments are always a set amount, unlike a variable rate.

Because of this fixed rates are often considered a safer option. It can be useful to know exactly what you are required to pay each month, making budgeting easier.

A secured loan with a variable interest rate means that the rate you receive when taking out the loan is subject to change. The interest rate changes when the Bank of England base rates changes, therefore some months your repayments could cost more than others. Equally, you may end up with a lower rate with a lower monthly repayment.

This does also mean that if interest rates increase you could end up repaying a lot more than you originally budgeted for. If you are unsure about being able to afford increased repayments, or you want the certainty of a fixed repayment amount, a fixed interest rate may be the best option

Different types of second charge mortgage rates

How does a second charge mortgage work?

Before taking out a second charge mortgage on your property, it’s important to understand how they work.

A second charge mortgage works much like your first mortgage, however they are completely separate from one another. This means you will have two mortgages to pay off on the property, unless you have already paid off your first mortgage.

If you were to sell your home, or if it were to be repossessed, the first mortgage gets cleared in full before paying off the second mortgage. However, it is important to note that the second mortgage lender can pursue you if there is any shortfall.

You need to have equity in your home in order to take out a second charge mortgage. The amount you can borrow depends on how much equity you have and your property value.  All lenders have their own criteria and their loan to value (LTV) will differ.

Are second charge mortgages expensive?

Are second charge mortgages expensive?

The cost of a second charge mortgage depends on various factors like the interest fee and product/lender fees.

As well as your repayment term, the interest rate you are offered will determine how much your monthly payment will be. This will affect the amount you will pay back overall.

Second charge mortgage rates are usually lower than on other forms of unsecured loan. This is because unsecured loans do not require you to use an asset as security.

Like other types of loans there are fees that come attached. The most common types of fees are arrangement fees (also known as lender fees), broker fees and early repayment fees.

As a direct lender we don’t charge a broker fee, only a lender fee applies. This also means that by going direct with us there no middle men involved and we can provide you with a lender decision quickly.

Why choose Central Trust?

We are here for you. We will provide the secured loan you need without delays and with a fantastic level of service.

As a direct lender with over 30 years’ experience, we know exactly what it takes to provide the very best service available…

Over 30 Years’ Experience

We are one of the UK’s longest established specialist lenders trading since 1988 giving us over 30 years’ experience providing secured loans, homeowner loans and second mortgages. We provide fast loans at great rates and pride ourselves on providing a level of service second to none.

Simple Application Process

Enquire for a loan with Central Trust, it couldn’t be simpler. You can call our loans team directly on 0800 980 6273 (Mon–Fri: 8:00 am–7:00 pm / Sat: 9:00 am–1:00 pm) or you can enquire online at any time using our quick and easy online form.

Friendly Personal Service

We pride ourselves on our service! We treat every single one of our customers with courtesy and respect and if we need to contact you, we’ll always make sure it’s at a time that suits you. We will answer any questions you may have honestly and deal with any problems quickly and fairly.

What to consider before taking out a second charge mortgage

There are various different factors you should consider when taking out a second charge mortgage.

Taking out a second charge mortgage means that you will be securing your loan to your property. By doing so, you are proving to the lender that you can and will be able to pay them back.

It’s therefore important to understand the risks that is associated with this type of loan. If you fail to make your monthly repayments, the lender has the right to repossess your property. However this is usually the last resort.

Before taking out a second charge mortgage it’s important that you assess your finances. Although your lender will complete affordability checks, you should also ensure that you can afford to make the monthly repayments over the term of the mortgage.

Lenders will still check your affordability regardless of your credit score. They will ask questions about your finances to better understand your circumstances.

It’s likely that they will complete a soft and hard credit search at some point of your application. This may influence their decision as to whether or not they can lend you the money.

All lenders have their own criteria so their questions may differ. However most lenders will look at your income, other loans you are currently paying off, the equity in your home and your monthly expenses.

Is a second charge mortgage a good idea?

A second charge mortgage can be used for a variety of reasons, although they are commonly used to consolidate debts, make home improvements and purchase a buy to let property.

Typically, they are used by those with poor credit profiles. This is because the loan is secured against your property, which means there is less risk involved for the lender.

Unsecured loan lenders may not be able to help at all, or the rate may be significantly higher in comparison to a secured loan. Often with an unsecured loan they are unable to help people with poor credit profiles, this is because there is more risk involved as they don't have the security of an asset.

If you are looking to borrow a larger amount of money, a second charge mortgage might be the best option. With a second charge mortgage you can typically borrow more money over a longer term in comparison to an unsecured loan, due to the security of your property.

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