Central Trust Second Charge Mortgage: Pros and Cons

The Quick Version

The Central Trust Second Charge Mortgage lets UK homeowners borrow between £10,000 and £250,000 with APRs ranging from 9.69% to 13.1%. Approval can happen in as little as 3 days. However, watch out for the significant fees involved, including a £1,999 arrangement fee and a £499 processing fee. This is not financial advice.

Rates shown are representative. Your actual rate depends on your credit profile. This is not financial advice.

The Numbers

Central Trust provides secured loans ranging from £10,000 to £250,000. APRs start at 9.69% and go up to 13.1%. Loan terms span from 3 to 30 years. Fees include a £1,999 arrangement fee and a £499 processing fee, according to Central Trust.

What's Actually Good

✅ Quick approval process: Loans can be approved in as little as 3 days. ✅ Flexible borrower requirements: They consider all credit histories and various income types, including self-employed and those on benefits. ✅ No broker fees, as Central Trust acts as a direct lender.

The Catch

❌ High fees: The £1,999 arrangement fee and £499 processing fee can significantly add to the cost. ❌ Potential property risk: As a secured loan, your home is at risk if repayments are not made. Additionally, the APR can be as high as 13.1%, which is above average for secured loans.

Who Benefits Most

This loan is ideal for UK homeowners who need access to large amounts of cash quickly and have a property to secure the loan against. It's particularly suited for those with a varied income or less-than-perfect credit score, as Central Trust considers a broad range of credit histories and income types.

The Bottom Line

If you need a substantial loan quickly and have the property to secure it, Central Trust could be a good fit, but be prepared for high fees. It's best for those who can handle the financial risk involved with a secured loan and who don't mind paying a bit more for the speed and flexibility.