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.
Also referred to as homeowner loans, secured loans allow you to borrow money using your home as security against the loan. This means that if you are unable to repay your loan, the lender can take your property as payment. The benefits of a secured loan include that it means lenders will have more confidence in you as a borrower, so they may offer you a larger loan, better interest rates on secured loans or lend you money despite having an adverse, poor or bad credit history or credit rating.
At Central Trust, we pride ourselves on offering some of the best secured loans in the UK. We provide clear and transparent information, making it easier to compare secured loans and make an informed decision.
All loans come with risks. For example, your credit score may decrease if you fail to repay your monthly payments on time. The biggest risk of a loan secured on houses is that if you are unable to repay your loan, your house is at risk of repossession, so it is important to make sure that you can afford any loan that you commit to.
At Central Trust, we would only ever repossess a house as an absolute last resort, and we always work closely with any of our customers who may be struggling to find better options.
Like nearly all other loans, you will repay interest on top of the amount of money you borrow. You will be required to make regular monthly repayments for a set period of time, usually known as the “repayment period”. If you choose a longer repayment term, your monthly repayments will usually be lower, but you will pay more interest overall. A shorter repayment term will have higher monthly repayments, but you will pay back less interest in total. With Central Trust, you can choose a loan term that best suits your needs.
Just like a mortgage, the interest rates for secured loans can either be fixed or variable. A fixed rate means that you will always repay the same amount of money, and a variable rate means that the amount you repay can go either up or down.
We can provide either fixed or variable secured loan rates, and our repayment periods range from 3 years up to 30 years depending on how much you want to borrow.
Unsecured loans do not have the risk of you losing an asset like your home, however they can be harder to get so you will most likely need a good credit score. Secured loans mean that you offer something in return (usually your home) if you are unable to repay the loan.
Risk
Your home or property may be repossessed if you don’t keep up your repayments
Credit Score
Using your home as security may help you get a loan with bad credit
Loan Size
Loans secured on property may help you borrow more money than unsecured / “personal” loans
Interest Rates
Interest may be lower as lenders have less risk
Risk
Defaulting will affect your credit score, but your home won’t be at risk
Credit Score
It is often harder to get an unsecured loan with bad credit
Loan Size
Lenders may offer smaller loans as there is more risk of you being unable to repay larger amounts
Interest Rates
The amount of interest you are charged will rely more on your credit score. The poorer your score, the more interest you may be charged
What can I use my loan for?
Your loans can be used for various purposes such as debt consolidation, home improvements, weddings, and short-term finance purposes.
Taking a secured loan means putting your home at risk of repossession if you do not repay the loan. This means that you should think carefully before taking one out. There are three main things to think about:
Are you certain that you have enough money available each month to make your repayments? Are there any potential costs that could cause an issue in the future?
Before lending you money, a lender will check how much “equity” is in your property. In simple terms, equity is the difference between how much your house is worth, and how much is left to repay on the mortgage. This means that there must be enough value in your home after the mortgage is repaid, to cover the amount you borrow on a secured loan.
Secured loans usually have a fixed or variable rate. With a fixed rate, the interest rate stays fixed for the duration of the introductory period. However, if your loan has a variable interest rate, there is the chance that your monthly repayments could go up. It is important to consider this when checking the affordability – if your monthly repayments were to increase, could you still afford them?
A secured loan may be suitable if you are a homeowner, need to borrow a larger amount, and understand that the loan is secured against your property. It may not be suitable if you can borrow more cheaply elsewhere, are already struggling with essential bills, or are consolidating debts over a longer term without understanding the total cost.
Before taking out a secured loan, it's also important to be aware of any risks. Loans secured on houses have the same risk as other loans, including negative marks on your credit history if you fail to repay the loan, and additional charges for missed payments. In addition, there is also the risk of losing your home if you cannot afford to repay your debt. This means that it is very important to consider these risks, and make certain that you can afford to repay the loan before you commit to it.
We will help you consider all the options we have available, and will always keep your best interests at heart before making any recommendations to you. All our loans have a 7 day cooling off period after submitting the application, so if you change your mind you are completely free to do so! Also, if you were to ever experience difficulties repaying your loan, we would always do our very best to help you find a solution, and we would only ever repossess a property as a very last resort.
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.
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.
Stuart Donald
6 years ago
Professional and pressure free from start to finish.
Tracy Mawson
6 years ago
Fantastic service from start to finish very efficient.
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What is a secured loan?
A secured loan is a way of borrowing money that's backed by something you own — typically a property or car. If you don't repay the loan as agreed, the lender has the right to take the asset used as security in place of the outstanding debt.
The idea behind a secured loan is confidence: by offering collateral, you give the lender reassurance that they'll get their money back, which is why secured loans can come with more favourable terms than unsecured borrowing.
Can I take out a secured loan with bad credit in the UK?
Secured loans may be an option for people with lower credit scores who are looking to borrow money. Because the loan is secured against an asset, such as your home, some lenders may be willing to consider applicants with a poor credit history who may not qualify for certain unsecured loans.
If you have bad credit, you may be offered a higher interest rate, although this will depend on your individual circumstances and the lender’s assessment of your application. If you have existing credit problems, it’s important to consider carefully whether taking on additional borrowing is affordable and appropriate for your circumstances.
Always make sure you can afford the monthly repayments before taking out a secured loan. Missing or making late payments could negatively affect your credit history and, because the loan is secured against your property, could ultimately put your home at risk. Setting up a Direct Debit can help you make your repayments on time, but it’s still important to budget carefully and make sure you can afford the payments throughout the loan term.
What happens if I default on a secured loan?
If you’re unable to repay a secured loan and your account goes into default, your lender may ultimately take steps to repossess and sell the property used as security to recover the outstanding debt. Repossession is generally a last resort, and the process will depend on your circumstances and the lender’s actions.
If the property is sold for more than the amount you owe, any remaining funds would normally be returned to you after the outstanding debt and applicable costs have been paid. However, if the sale proceeds do not cover the amount you owe, you may still be responsible for the remaining debt.
If you’re experiencing financial difficulty or think you may struggle to make your repayments, contact your lender as soon as possible. They may be able to discuss your circumstances and explore options to help you manage your repayments.
If you have a loan with us and are experiencing financial difficulties, please contact us as soon as possible so we can discuss the options available to you.
Secured loan vs remortgage - which is better?
Whether a secured loan or remortgage is more suitable will depend on your circumstances, financial situation and borrowing needs. A secured loan may be worth considering if:
Each option has different costs, risks and eligibility requirements, so it’s important to consider the overall cost and whether the repayments are affordable before making a decision.
You can find out more on this topic from our 'What is the difference between secured loans and remortgaging?' blogpost article.
How can a secured loan affect my credit score?
Making your secured loan repayments on time and in full can help demonstrate responsible borrowing and may have a positive effect on your credit score.
However, missing or making late repayments could negatively affect your credit history. Your credit score is also influenced by other factors, so taking out a secured loan does not automatically mean your score will improve.
Are secured loans easier to access than unsecured loans?
Yes. Secured loans can be an option for people who may find it harder to qualify for an unsecured loan, including some borrowers with lower credit scores, lower incomes or who are self-employed. However, eligibility and affordability requirements vary between lenders.
Secured loans may offer lower interest rates than some unsecured loans because the loan is secured against an asset, such as your home. However, this means your property is at risk if you fail to keep up with your repayments, so it’s important to make sure you can afford the loan before taking it out.
The security provided by your property can give lenders greater reassurance when assessing an application, which may mean they are willing to consider borrowers who might not qualify for certain unsecured loans. However, having bad credit does not guarantee that you will be accepted for a secured loan, and lenders will still assess your circumstances and ability to repay.
Can I pay off a secured loan early?
Yes. If you’re in a position to repay your loan early, you may be able to do so. However, some lenders may charge an early repayment fee, while others may not.
Even if an early repayment fee applies, repaying your loan early could still reduce the total amount you pay, as you may pay less interest over the shorter loan term. It’s important to check whether any early repayment charges apply and consider whether repaying early would save you money overall.
What are the risks of taking out a secured loan?
Before taking out a secured loan, it’s important to understand the risks involved. As with other types of borrowing, failing to make your repayments on time could result in additional charges and may negatively affect your credit history.
However, because a secured loan is secured against your property, there is an additional risk to consider. If you’re unable to repay the loan, your property could ultimately be repossessed.
It’s therefore important to consider whether you can afford the repayments before taking out a secured loan. If you’re unsure, you should consider the potential costs and risks carefully and explore the options available to you.
Could I lose my home if I don't repay a secured loan?
If you don't keep up with your secured loan repayments, your property could ultimately be repossessed because it is used as security for the loan. However, repossession is generally a last resort, and your lender may be able to offer support if you are experiencing financial difficulties.
Depending on your circumstances, options such as a managed repayment plan or a repayment holiday may be available. If you are struggling to make your repayments, it's important to contact your lender as soon as possible to discuss your options.
Bear in mind that late or missed payments may result in additional fees and could be recorded on your credit history. If you fail to repay the loan, this could also lead to your property being repossessed.
How long does it take to pay off a secured loan?
It depends on the loan term you choose and whether you make your scheduled repayments on time. Secured loans can typically be taken out over terms ranging from 3 to 30 years.
Generally, choosing a longer loan term means lower monthly repayments, but you will usually pay more interest over the life of the loan. Choosing a shorter term means higher monthly repayments, but you could pay less interest overall and repay the loan sooner.
