Central Trust secured loans review

Central Trust is a specialist secured loan lender that's been helping UK homeowners access finance since 1988. Headquartered in Watford, Hertfordshire, Central Trust operates as a direct lender rather than a broker, offering secured loans from £3,000 to £250,000 with terms spanning 3 to 25 years. It's particularly known for considering applicants with less-than-perfect credit histories.

If you're researching Central Trust secured loans, you're likely wondering whether they're the right choice for your circumstances. In this review, we'll cover eligibility criteria, fees, the application process, and how Central Trust compares to alternatives, so you can make an informed decision.

Our rating: 4 out of 5

Key strengths

• Direct lender with no separate broker fees
• Considers all credit histories, including defaults and missed payments
• Human underwriting rather than automated decisions
• Strong customer service with live chat support
• Over 35 years' experience in secured lending

Key weaknesses

• Maximum 75% LTV is lower than some competitors, who offer up to 90%
• Maximum loan of £250,000 is lower than some alternatives
• Rates for applicants with good credit may be less competitive than prime lenders
• Arrangement fees can be substantial, up to £1,999

Before looking at Central Trust specifically, it helps to understand what secured loans are and how they work, especially if you're new to this type of borrowing.

A secured loan (also called a homeowner loan or second charge mortgage) uses your property as security for the loan. This means the lender places a charge on your home, giving them the right to repossess it if you don't keep up repayments.

Because your home backs the loan, secured lending typically offers:

• Larger borrowing amounts - often £10,000 to £500,000 or more, depending on your equity
• Lower interest rates compared with unsecured personal loans
• Longer repayment terms - up to 25 or even 30 years with some lenders
• More flexible eligibility, including acceptance of adverse credit histories
• Suitability for significant expenditure, such as consolidating large debts or renovating a property

The main risk is clear: if you can't make repayments, you could lose your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. That's why it's important to only borrow what you can comfortably afford and to consider how you'd manage if your circumstances changed. Missing payments on a secured loan can also damage your credit score.

Interest on secured loans can be fixed, where payments stay the same for a set period, or variable, where payments can change in line with the Bank of England base rate. Arrangement and processing fees are typically charged in addition to interest, which adds to the total cost of borrowing.

How much can you borrow with a secured loan?

The amount you can borrow depends on three main factors.

1. Your available equity

Equity is the portion of your home you own outright. Calculate it by subtracting your outstanding mortgage from your property's current value. For example, if your home is worth £300,000 and you owe £180,000 on your mortgage, you have £120,000 in equity.

2. The lender's maximum loan-to-value (LTV)

LTV is the total lending secured against your property as a percentage of its value. Most secured loan lenders cap this at 75-85%, though some go up to 90%. Lenders also set a minimum and maximum loan amount - Central Trust, for example, lends from £3,000 up to £250,000.

With Central Trust's 75% maximum LTV:

• Property value: £300,000
• Maximum total secured lending: £225,000
• Minus existing mortgage: £180,000
• Maximum secured loan available: £45,000

3. Affordability assessment

Even with sufficient equity, lenders must assess whether you can afford the monthly payments. They'll look at your income, existing debts, and regular outgoings. The loan term you choose will also affect your monthly repayments and total borrowing cost. If the monthly payment would stretch your budget too thin, you won't be approved for the full amount your equity allows.

Central Trust is one of the UK's longest-established specialist secured loan lenders. It's part of the Norfolk Capital Group, a wider group of financial services companies, which adds to its experience and stability in the industry. Central Trust has been providing secured loans since 1988, and has offered homeowner loans and second charge mortgages for over 35 years.

Central Trust positions itself as a specialist lender that takes a common sense approach to applications. Unlike many mainstream lenders who rely heavily on automated credit scoring, Central Trust uses human underwriters who assess each application individually.

This approach means they can consider circumstances that automated systems might reject outright, such as self-employment with a limited trading history, employment probation periods, or past credit difficulties that have since been resolved.

Central Trust offers a minimum loan of £3,000 and a maximum of £250,000 for UK homeowners. Secured loans are often used for significant expenditure, such as home improvements or consolidating large debts.

Standard secured loans

Central Trust's core product is available for most purposes, including:

• Home improvements
• Debt consolidation
• Major purchases
• Life events, such as weddings or education costs
• Business purposes, subject to criteria

Key features:

• Borrow £3,000 to £250,000
• Terms from 3 to 25 years
• Fixed or variable rate options
• Maximum 75% LTV

Bad credit secured loans

The same core product, but with underwriting specifically geared toward applicants with adverse credit histories. Central Trust considers:

• Defaults
• Missed payments (though no more than two within 12 months)
• Debt management plans
• Past credit difficulties

Applicants with adverse credit will typically face higher rates, reflecting the increased risk to the lender.

Buy-to-let secured loans

For accidental or non-professional landlords who need to borrow against a rental property. These are consumer buy-to-let products, not standard buy-to-let mortgages, which means they come with additional regulatory protections.

If you're a professional landlord with multiple properties, Central Trust's sister company Mercantile Trust may be more suitable.

Understanding the full cost of borrowing is crucial when comparing secured loans. Central Trust typically offers a fixed rate for an initial period, often five years, followed by a variable rate linked to the Bank of England base rate for the remainder of the term.

Because rates change frequently and depend on your individual circumstances, we don't publish specific figures here. Speak to an advisor for a personalised illustration based on your loan amount, term, and credit profile.

Important: while Central Trust advertises no separate broker fees, which is accurate since it's a direct lender, its arrangement fee of up to £1,999 is still a significant cost. Always factor this into your total borrowing cost when comparing lenders.

How rates are determined

Your actual rate depends on several factors:

• Credit profile - excellent credit generally accesses lower rates; fair or adverse credit means higher rates to reflect increased risk
• Loan-to-value - a lower LTV, meaning more equity, generally means better rates
• Loan amount and term - smaller loans and different terms can affect rate availability
• Fixed vs variable - fixed-rate loans offer payment certainty for a set period but may start higher; a variable rate can fluctuate with the Bank of England base rate, so repayments can go up or down

What will it actually cost you?

The amount you eventually repay depends on your loan amount, term, interest rate, and any fees added to the loan. Here's how the main cost elements fit together for an example £40,000 loan for home improvements:

This is why it's important to compare the total cost of borrowing, not just the headline rate or monthly payment, when choosing a secured loan.

To qualify for a Central Trust secured loan, you'll typically need to meet the following criteria. Applicants are usually required to have been in their current employment for at least three months, and Central Trust considers your personal circumstances, including employment status, credit history, and affordability, when assessing your application.

Income requirements

Central Trust considers various income types:

• Employment income (PAYE)
• Self-employment income (1 year minimum for some products)
• Pension income
• Investment income
• Rental income

For self-employed applicants, Central Trust is known for being more flexible than mainstream lenders. While most require 2-3 years' accounts, Central Trust may consider applicants with shorter trading histories, particularly if turnover exceeds certain thresholds.

Credit requirements

Central Trust doesn't publish minimum credit score requirements. Instead, it assesses each application individually and may consider applicants with:

• Defaults (depending on age and whether satisfied)
• Missed payments (no more than two within 12 months)
• Debt management plans
• Restrictions or cautions against the property
• Past adverse credit that has since been resolved

What Central Trust is unlikely to accept:

• Very recent or ongoing severe credit issues
• Active insolvency proceedings
• Fraud markers on your credit file
• Properties with serious structural issues

We've covered the key strengths above. Here's where Central Trust may fall short, depending on your circumstances.

Cons

• Lower maximum LTV - at 75% standard LTV (up to 90% in some cases), Central Trust offers less borrowing capacity than competitors who routinely offer 85-90% LTV. If you need to maximise borrowing against limited equity, this could be restrictive.
• Lower maximum loan - a £250,000 maximum is lower than some competitors, who offer up to £1,000,000. For larger borrowing needs, you may need to look elsewhere.
• Higher rates for good credit - if you have excellent credit, Central Trust's specialist rates may not be as competitive as prime lenders. Its strength is adverse credit, not competing on price for clean applications.
• Substantial fees - arrangement fees of up to £1,999 plus a £499 processing fee can add significantly to your borrowing cost. Always factor these into total cost comparisons.
• Variable rate after the fixed period - Central Trust typically offers a fixed rate for an initial period followed by a variable rate, which means your payments could change once that period ends.

Understanding how Central Trust stacks up against alternatives helps you make the right choice. It's worth comparing several secured loan providers to find the terms and approval odds that suit your circumstances.

Central Trust vs United Trust Bank

Choose Central Trust if:

• You want to apply directly, not only through a broker
• You need a smaller loan amount, under £10,000
• You prefer a direct lender relationship

Choose United Trust Bank if:

• You need to borrow more than £250,000
• You want a longer term, up to 30 years
• You're working with a broker anyway

Central Trust vs Together Money

Choose Central Trust if:

• You want the simplicity of a direct lender
• You prefer explicit human underwriting
• Customer service is a priority

Choose Together Money if:

• You need to borrow more than £250,000
• You need the longest possible term
• You have very complex circumstances

Central Trust vs Shawbrook

Choose Central Trust if:

• You want to apply directly
• You have adverse credit, where Central Trust is generally stronger
• You prefer a smaller, specialist lender

Choose Shawbrook if:

• You need longer terms, up to 35 years
• You need a larger loan amount
• You prefer a larger banking institution

Central Trust has built a strong reputation for customer service. It provides existing customers with named points of contact by phone, email, and live chat. Here's what the reviews show.

Trustpilot overview

• Rating: 5/5 stars
• Number of reviews: 282
• Classification: Excellent

Common themes in positive reviews

Communication: customers frequently praise the clear, regular updates throughout the application process. Named contacts mean you're not passed between different advisors.

Understanding approach: many reviewers mention feeling understood rather than judged, particularly those with complex circumstances or past credit issues.

Speed: several reviews highlight faster-than-expected processing times once all documentation was provided.

Explanation of fees: customers report that advisors clearly explain all fees, interest charges, terms, and conditions before proceeding.

Areas some customers mention for improvement

Fees: some customers note the arrangement fees are higher than expected, though reviews generally indicate these were explained clearly upfront.

Variable rate concerns: a few reviews mention uncertainty about what happens when the fixed rate period ends and the variable rate begins.

Based on our analysis, Central Trust secured loans are particularly well-suited for certain circumstances. Central Trust considers your personal circumstances, including employment status, credit history, and specific needs, when assessing your application.

Ideal candidates

Homeowners with adverse credit - if you've experienced credit difficulties in the past, such as defaults, missed payments, or debt management plans, Central Trust's human underwriting approach gives you a genuine chance of approval where automated systems might reject you.

Self-employed applicants with limited trading history - Central Trust's flexibility on self-employed income documentation makes it a good option if you've been trading for less than the typical 2-3 years most lenders require.

Those who prefer dealing direct - if you want the simplicity of dealing directly with a lender rather than going through a broker, Central Trust accommodates this. You can apply online or via live chat.

Borrowers who value customer service - if a responsive, supportive lending experience matters to you, Central Trust's strong Trustpilot ratings and named advisor approach may appeal.

Who should look elsewhere

Those needing to maximise borrowing - if you need to borrow against most of your available equity, or need more than £250,000, other lenders offer more flexibility.

Applicants with excellent credit seeking the most competitive rates - if you have an excellent credit score and history, you may find better rates with prime lenders. Central Trust's strength is adverse credit, not competing on price for clean files.

Those wanting the longest possible term - if you need terms beyond 25 years to keep monthly payments manageable, other lenders offer 30-35 year terms.

Central Trust has built a solid reputation over 35+ years as a specialist secured loan lender. Its human underwriting approach, acceptance of adverse credit, and strong customer service make it a compelling option for homeowners who don't fit the mainstream lending mould.

Central Trust's strengths shine when:

• You have past credit issues but have since stabilised your finances
• You're self-employed with less traditional income documentation
• You want to deal directly with a lender rather than through a broker
• Customer service and clear communication matter to you

You might find better options elsewhere when:

• You have excellent credit and want the lowest possible rate
• You need to borrow more than £250,000
• You need maximum LTV to access your full equity
• You want the longest possible term, 30 years or more

Overall, we rate Central Trust 4 out of 5 for secured loans, a strong performer in the specialist market, though not necessarily the best choice for everyone.