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.
The interest rate of your secured loan depends on various different factors, including the amount of money you are looking to borrow, the repayment term and other factors relating to your credit history.
Interest rates on secured loans tend to be lower than what you would be charged on unsecured loans, this is because the money is secured against your home.
Lenders check your credit score 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 circumstances, we will do our best to help you get the secured loan you need. Loans are available to eligible borrowers. Rates are subject to credit score, lending criteria, and individual circumstances.
There are two different types of interest rates that secured loans can have, a fixed rate or variable rate. It’s important to understand how interest rates work and how they can affect you.
The rate you are charged will determine how much your monthly repayments will be. It also affects the amount you will pay back overall.
A fixed interest rate means you are charged a fixed amount every month throughout the term the fixed rate period. After the fixed term is up, you will potentially be able to refinance. A fixed interest rate also means that your monthly repayments won’t change, unlike a variable rate. Fixed rates are often considered a safer option, particularly in times of uncertainty. 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 can 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.
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 more suitable. A variable rate is often seen as a more risky option, that’s harder to budget with.
Similar to other loans, the main costs of a secured loan are the fees and interest rate.
As well as your repayment term, the rate of the secured loan you are offered will determine how much your monthly payment will be. Ultimately, this will affect the amount you will pay back overall.
Like any type of loan 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 are no middle men involved and we can provide you with a lender decision fast.
Early repayment fees (ERCs) may apply to you loan. This means if you wish to repay the money you’ve borrowed back earlier than planned, an early repayment charge may stand. The amount depends on the lender, so it’s important to bear this in mind when agreeing to your loan.
There are various factors to consider when taking out a secured loan. By securing your loan to your home, 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 associated with this type of loan. If you fail to make your monthly repayments, the lender can repossess your property, although this is usually the last resort.
It’s important to assess your finances when considering a secured loan. Whilst the lender will assess your affordability, you should also ensure that you can afford to make the monthly repayments over the term of the mortgage. To check this, simply calculate how
much you could realistically afford to repay every month, taking your monthly expenses into consideration.
Whether you have a good or bad credit score, lenders will still want to check your affordability, so they will ask questions about your financial circumstances. They will likely complete a soft and hard credit search at some point of your application. This may influence their decision as to whether or not they will lend you the money.
There are other factors that lenders will take into account when considering you for a secured loan. Most lenders will look at your income, other loans you are currently paying off, the equity in your home and your monthly expenses. However, all lenders have their own criteria so this may differ.
The amount you could borrow with a secured loan depends on your financial circumstances, the lenders criteria and the value of the asset (usually your home) you are looking to secure your loan against.
There must be enough equity in your home to cover the amount of money you wish to borrow. To work this out simply deduct your outstanding mortgage balance from the value of your property. At Central Trust our maximum loan to value is 85%. This means that you need to own at least 15% of your property.
For example, if you had a property worth £250,000, your remaining mortgage would need to be £212,500 or less in order to raise any additional money.
It’s good to have a rough idea what equity you have in your home, but don’t worry if you don’t know the exact figures before enquiring. We can discuss this with you and see how we‘d be able to help.
The amount you can borrow also depends on your financial circumstances. Most lenders will look at your financial history, your income and your credit score when deciding if they can lend you the money or not. These checks are carried out to ensure that you can afford the mortgage repayments for the duration of your loan term.
Even if you have previously been declined 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, including defaults, CCJs, missed payments and those on debt management plans. These are however subject to our criteria and underwriting standards.
At Central Trust, we provide loans up to £250,000. We consider all applications on an individual basis, so whatever your credit circumstances we will try our very best to help you.
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.
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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What is the difference between fixed and variable rates?
A fixed interest rate means you are charged a fixed amount every month throughout the term the fixed rate period. After the fixed term is up, you will potentially be able to refinance. A fixed interest rate also means that your monthly repayments won’t change, unlike a variable rate. Fixed rates are often considered a safer option, particularly in times of uncertainty. 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 can 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.
What rates do you offer?
The rate you are offered on a secured loan will depend on your personal circumstances such as your credit history, and takes into consideration criteria requirements, loan term, our representative APR etc. Lenders that have stricter criteria and do not accept poor credit will likely have a lower rate than those lenders that accept applicants with poor credit. This is because applicants that have a good credit history are considered ‘less risk’.
How do you calculate your rates?
The rate we offer is based on a range of factors, including your personal circumstances, such as your credit profile, income, and debt-to-income ratio, as well as details of the loan itself, including the amount you borrow and the loan term.
Our Representative APR is displayed at the top of each loan landing page. This provides an indication of the typical cost of borrowing for that product. However, the rate you are offered may be higher or lower, depending on your individual circumstances and the details of your application.