Secured Loans with a Debt Management Plan
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 £43,000 payable over 9 years on a fixed rate of 10.43% for the first 5 years, followed by a variable rate, currently 12.00%, would require 60 monthly payments of £651.19 followed by 48 monthly payments of £670.67. The total amount repayable would be £71,263.56, this includes interest, an arrangement fee of £1,999 and a processing fee of £499. The overall cost for comparison is 12.9% 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.
What is a secured loan?
A secured loan is 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.
Can I get a secured loan with a debt management plan?
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 secured 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.
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) 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.
What is a debt management plan?
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.
Key features of a debt management plan
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 realizing the intended benefits.
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.
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
Jenny Bush
Head of Direct Sales
20 years at Central Trust
01923 280777
FAQ's
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.
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.
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 less lenders that will consider applicants with a historic or current DMP. So you may need a specialist lender to help. This is where we can help. We are a specialist secured loan lender and have been helping borrowers with DMP’s for over 30 years. You can enquire by submitting an enquiry with us below, calling us on 0800 980 6273 of this page or starting a live chat with a member of the team.