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.
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.
At Central Trust, we will always give you the best possible interest rate and will only ever recommend a product that suits your needs, and that you can afford to repay each month.
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.
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.
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.
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.
At Central Trust, we provide loans from £3,000 up to £250,000. We want to help as many people as we can, which is why our criteria is more flexible in comparison to most high street lenders.
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.
We consider all applications on an individual basis, so whatever your credit circumstances we will try our very best to help you.
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.
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…
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.
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.
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.
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.
Before taking out a secured loan, it’s important to understand how they work, so you can be sure they are the right option for you.
Secured loans can be used for a variety of different reasons, although typically they are used to consolidate debts, make home improvements and purchase buy to let properties.
They are often used by those with poor credit profiles. This is because the loan is secured against your home, so 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.
If you are looking to borrow a larger amount of money, a secured loan might be the best option. With secured loans you can typically borrow more money over a longer term in comparison to an unsecured loan, due to the security of your property.
It’s therefore important to consider the risks involved. As mentioned, by taking out a secured loan, you are agreeing to use your home as security.