Secured Loan Rates
Borrow with us and you could receive your loan in a few weeks
Borrow up to £250,000
Flexible terms from 3-25 years
We consider all credit histories
Employed, self employed, pension and benefit income
We're a direct lender, so there are no hidden broker fees
Representative Example: A secured loan of £37,000 payable over 9 years on a fixed rate of 10.61% for the first 5 years, followed by a variable rate, currently 12.19%, would require 60 monthly payments of £569.20 followed by 48 monthly payments of £586.29. The total amount repayable would be £62,293.92, this includes interest, an arrangement fee of £1,998 and a processing fee of £499. The overall cost for comparison is 13.4% APRC representative.
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:
1: 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.
2: Your details
One of our qualified advisors will call you to discuss your enquiry and work out a monthly payment that meets your needs and circumstances.
3: We'll do the rest
We'll help you complete the paperwork and any other supporting documentation required.
What do our customers say?
You can relax knowing you’re working with a highly rated team. But don’t just take our word for it, visit our website and read our reviews – they speak for themselves.
Secured loan rates
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.
Different types of secured loan rates
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 of the loan. This 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.
Why choose Central Trust?
35 years' experience
We are one of the UK's longest established specialist lenders trading since 1988 giving us over 35 years' experience providing secured loans, homeowner loans and second mortgages.
Simple application process
You can call our team directly on 0800 980 6273 (Mon-Fri:8:00am-7:00pm /Sat:9:00 am-1:00pm) or you can enquire online at any time using our quick and easy online form.
All credit considered
We understand that life happens and there's more to your story than your credit score or recent pay slip. So if you have a less than perfect credit score we could still help.
How much could I borrow?
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 75%. This means that you need to own at least 25% of your property.
For example, if you had a property worth £250,000 your remaining mortgage would need to be £187,500 or less in order to raise any 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, CCJ’s, 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.
Case studies
Home improvement loan
For an applicant with poor credit history.
Secured loan
For a self-employed client with limited trading history.
Debt consolidation loan
For an applicant with multiple lines of credit.
How much do secured loans cost?
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 no middle men involved and we can provide you with a lender decision fast.
Early repayment fees (ERC’s) 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 bare this in mind then agreeing to your loan.
What to consider when taking out a secured 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.
Ready to enquire?
Talk to our qualified mortgage experts now
We are here to help
- Friendly UK based advisors
- Enquiring won't affect your credit rating
- Fast turnaround times 7-10 days is possible
- No phone menus - immediate contact from our advisors
- We are a direct lender, so we'll work with you from start to finish
Tara Evans
Head of Direct Sales
20 years at Central Trust
01923 280199