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 homeowner loan is borrowing money using a property (usually your house or apartment / flat) as security against your loan.
Lenders can often be more flexible about who they give loans to if you use your home as security. As a result, people with adverse, poor or even bad credit histories are often able to borrow the money they need without the need to pay higher rates of interest that are sometimes associated with unsecured loans.
Taking out a homeowner 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.
In order to secure a homeowner loan, you must be a homeowner or mortgage holder and there must be enough equity in the property being used as security to cover the loan.
Our loans are also often called secured loans or second charge mortgages. Using your home as security against your loan can be a great way to get the cash you need, when you need it, and paying a lower rate of interest.
Even though using your home as security could help you borrow more money or overcome a poor credit history, it's important to remember that your home may be repossessed if you do not repay the loan. Always make certain you can afford the monthly repayments and always budget for them each month.
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.
The exact interest rate of a homeowner loan will vary depending on your personal circumstances.
The total cost and repayment periods of all loans will vary from company to company and will be based on how much you wish to borrow, your credit history and how much equity is in the property being used as security. We will always offer you the best homeowner loan rates that we can, but it is important to remember that the interest rate we will be able to offer you may vary. We will always make sure that you can afford the monthly repayments before we agree your loan. Your home may be repossessed if you fail to repay your loan; however, we will always try to help you to ensure this is the last resort.
As with any loan, it’s important to understand that falling behind on your repayments could potentially impact your credit score, and in some extreme cases, could potentially put your home at risk if your loan is secured against it. We will always try to ensure that your monthly repayments are affordable, however if circumstances change, we are here for you and will work to find a suitable solution.
How much equity there is in your property
There must be enough equity to cover the value of the loan secured against it
Your income
It is essential that you can afford your repayments
Existing credit agreements
Existing debts will affect the amount you can afford to repay each month
Credit score
This may affect the interest rate of the loan, we may still be able to help if you have bad credit
Homeowner loans are frequently referred to as secured loans because you must be a homeowner to use your house as collateral.
Whilst all homeowner loans are secured loans, not all secured loans are homeowner loans. It depends on the asset used as collateral. Almost anything of significant value can be used as collateral to secure a loan. Common assets include residential or commercial real estate, vehicles, cash savings, and investment portfolios.
All secured loans give the lender similar rights to repossess your home if you don't keep up repayments.
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.
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.
Homeowner loans aren’t just for people with good credit, we can also provide loans for applicants with adverse, poor or even bad credit histories…
If you have struggled with debt in the past, have a bad credit score or have previously been declined by lenders 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, despite historic issues such as defaults, CCJs, missed payments and those on debt management plans.
Unlike other lenders, we look at the bigger picture.
There is no strict automation to our lending decisions. We take a common sense approach based on your specific case. A member of the team, NOT a computer, makes the final decision, every single time. We consider each application for a bad credit homeowner loan on an individual basis, so whatever your credit circumstances, we will try our very best to help you secure the home owners loan you want.
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.
Share
One of our qualified advisors will call you to discuss your enquiry and work out a monthly payment that meets your needs and circumstances.
Complete
We'll help you complete the paperwork and any other supporting documentation required. Everything can be completed electronically, or on paper if you prefer.
Ready to enquire?
Call an advisor free on:
0800 980 6273
How does a homeowner loan work?
A homeowner loan uses your home as security against the amount of money you borrow (known as providing ‘collateral’).
Using a property as security usually lets you borrow money at a lower interest rate, and to borrow larger amounts of money. Your property must have enough equity to cover the value of your loan – it is important to remember that the property may be at risk if you do not keep up with any repayments secured against it.
Using your property as security may also help you get a loan, even if you don’t have a great credit rating. If you would like to check your credit rating, you can carry out a free, online credit check here.
Benefits of a homeowner loan
The benefits of using your home as security against a loan include:
Even though using a property as security will often help you get a lower interest rate, it’s important to remember that the exact interest rate of your loan will depend on your personal circumstances.
How much could I borrow?
Typically with homeowner loans you can borrow up to £250,000. However the amount you can borrow depends on the available equity that’s in your property.
Equity is the portion of your home that you own outright free from any mortgage, including your initial deposit and the money you’ve paid back. To work out how much equity you have in your home, simply subtract the amount you owe on your mortgage form the market value of your home.
What questions could I be asked?
Whilst homeowner loans can give borrowers the funds they need, it is important to note that mortgage offers are dependent on various factors. Every lender has different criteria that they use to work out your affordability as well as how much you could borrow.
As part of your homeowner loan application, lenders will complete an affordability check to assess your ability to repay the loan. It’s likely that they will ask you to provide evidence of your income and expenses including essential and non-essential out-goings.
You may even be asked about future plans, as this can sometimes impact your finances and ability to pay your mortgage repayments.
At Central Trust you can borrow up to a maximum of £250,000, with repayment terms from 3 to 30 years. It’s easy to enquire, simply fill out our application form, or call the number at the top of this page to speak to a qualified mortgage advisor.
How much does a homeowner loan cost?
The cost of a homeowner loan depends on several factors, such as:
Who are homeowner loans suitable for?
As you’d expect, you can’t get a homeowner loan without owning a property. If you rent your home you would need to look at applying for an unsecured loan that doesn’t require an asset to secure the money to.
Typically, this type of loan is used by homeowners who want to borrow a larger sum of money. This is because the money you borrow is secured to your property, unlike an unsecured loan.
What are the risks associated with a homeowner loan?
No loan is 100% safe, as failure to repay will result in a poor credit history. Borrowing against your home can be risky, but only if you don't pay back the money. A homeowner loan can be good if you wish to borrow larger amounts, get a better interest rate or overcome a poor credit history, but it's essential to make sure that you can afford the repayments as your home may be at risk of repossession if you can’t.
Are homeowner loans a good idea?
If you are sure you can afford the repayments, a homeowner loan can help overcome a poor or bad credit history, and may allow you to get lower interest rate than an unsecured loan and potentially save money. But borrowing against your home can be risky. If you struggle to meet the repayments, you will be risking the property. But repossessing a property is often the very last resort for a lender, they will always try and help reach an agreement with you before things get that far.
Is a homeowner loan the same as a mortgage?
No. A homeowner loan is different to a mortgage. A homeowner loan is taken out in addition to your mortgage, but your mortgage takes priority over a homeowner loan. This means that if your house is repossessed to pay off a debt, the mortgage lender will be paid first. Then the lender who provided the homeowner loan will get what they are owed. If any money is left over, you will get it.
Is a homeowner loan the same as a secured loan?
Homeowner loans are frequently referred to as secured loans because you must be a homeowner to use your house as collateral.
Whilst all homeowner loans are secured loans, not all secured loans are homeowner loans. It depends on the asset used as collateral. Almost anything of significant value can be used as collateral to secure a loan. Common assets include residential or commercial real estate, vehicles, cash savings, and investment portfolios.
All secured loans give the lender similar rights to repossess your home if you don't keep up repayments.
