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.
A secured loan is often referred to as a homeowner loan - a type of loan that is backed by collateral, which is an asset that the borrower owns. This collateral (usually a property) provides security to the lender in case the borrower fails to repay the loan.
Whilst it may feel daunting, it is possible to obtain a secured loan with a debt management plan (DMP). However, not all lenders will consider this. You may need to find a specialist mortgage lender that has experience in helping people with poor credit profiles.
If you are a homeowner, you could take out a homeowner loan on your property to clear your DMP. Equally, if you are looking for funds for home improvements, or to purchase a new car you could clear your DMP in the process. It’s important to note that the amount you can borrow depends on the equity in your property and whether you can make the monthly repayments.
A debt management plan is a structured and personalised financial strategy designed to help individuals manage and repay their debts more effectively. These debts typically include credit card balances, medical bills, and personal loans. The primary goal of a debt management plan is to provide a manageable and structured path for individuals to regain control of their finances and work towards becoming debt-free.
Professional Assistance:
Individuals typically enrol in a DMP with the assistance of credit counselling agencies or financial counsellors. These professionals work with creditors on behalf of the individual to negotiate more favourable terms for debt repayment.
Single Monthly Payment:
Under a DMP, individuals make a single monthly payment to the credit-counselling agency, which then distributes the funds to various creditors based on the negotiated terms. This consolidation of payments simplifies the repayment process for the individual.
Interest Rate Reduction:
Creditors may agree to lower interest rates on enrolled debts, reducing the overall cost of repayment. This can result in more affordable monthly payments for the individual.
Extended Repayment Period:
In some cases, creditors may extend the repayment period, allowing individuals to make lower monthly payments over a longer period. This extended timeline helps ease the financial burden on the debtor.
Financial Education:
Many credit-counselling agencies provide financial education and budgeting assistance to help individuals develop better money management skills. This educational component aims to prevent future financial difficulties.
Voluntary Participation:
Enrolling in a Debt Management Plan is voluntary, and individuals can choose to opt out at any time. However, completing the plan as agreed is crucial for realising the intended benefits.
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
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.
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One of our qualified advisors will call you to discuss your enquiry and work out a monthly payment that meets your needs and circumstances.
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We'll help you complete the paperwork and any other supporting documentation required. Everything can be completed electronically, or on paper if you prefer.
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0800 980 6273
What are the pros and cons of a secured loan?
Secured loans come with both advantages and disadvantages. Understanding the pros and cons is crucial for individuals considering this type of financing. Here is a breakdown of the key aspects:
Pros
Lower Interest Rates:
Secured loans typically offer lower interest rates compared to unsecured loans because they are backed by collateral. This can result in lower overall borrowing costs.
Higher Loan Amounts:
Due to the collateral securing the loan, lenders may be willing to offer higher loan amounts. This can be beneficial for individuals looking to finance major expenses like home improvements or education.
Adverse Credit
Secured loans are generally easier to obtain for individuals with lower credit scores or a limited credit history. The collateral mitigates the lender's risk, making approval more likely.
Longer Repayment Terms:
Secured loans often come with longer repayment periods, allowing borrowers to spread out their payments over an extended period. This can result in more manageable monthly payments.
Debt Consolidation:
Secured loans can be used for debt consolidation, allowing borrowers to combine multiple debts into a single loan with a potentially lower interest rate. This simplifies repayment and may reduce the overall cost of borrowing.
Purpose:
They can be used for any legal purpose, including debt consolidation, making home improvements, paying for a dream holiday or wedding, purchasing a car, investing in a new business or using it to put down a deposit on an investment property or holiday home.
Cons
Risk of Collateral Loss:
The primary disadvantage of secured loans is the risk of losing the collateral if the borrower fails to repay the loan. For example, in the case of a secured mortgage, the lender may foreclose on the property.
Early repayment charges
If you take out a secured loan and wish to pay it off earlier, before the term is set to end you will likely be required to pay early repayment charges or an exit fee. The amount you are required to pay varies lender to lender and is dependent on the outstanding balance and interest rate.
Possibility of over borrowing:
The availability of higher loan amounts may tempt individuals to borrow more than they actually need, leading to higher debt levels and potential financial strain.
How long does a debt management plan stay on your credit file?
A DMP itself doesn't have a direct impact on your credit score (unless a creditor specifically asks for a note to be added), but the accounts included in the plan may be reported to credit bureaus. The presence of a DMP on your credit report can have varying effects, and its duration can depend on several factors, including the reporting practices of your creditors and credit bureaus.
Can I get a secured loan after my debt management plan has settled?
You can get a secured loan if your DMP has been settled or if you are still currently in one. It is not a formal agreement so you don’t need to wait until it’s been settled to apply for a secured loan.
There may be fewer lenders that will consider applicants with a historic or current DMP. So you may need a specialist lender to help. We are a specialist secured loan lender and have been helping borrowers with DMPs for over 30 years. You can enquire by completing an enquiry form on the website, calling us on 0800 980 6273 or starting a live chat with a member of the team.
