Norwich Trust Loans: Bad Credit Loans Pros, Cons & Features
Norwich Trust offers unsecured personal loans, but you’ll only be able to apply if you’re a homeowner. Find out more about the pros and cons of a Norwich Trust loan.
Norwich Trust loans: at a glance
Norwich Trust Personal Loan
3 to 10 years
£3,000 to £20,000
34.9%
No
Representative APR 34.9%. Based on a loan of £12,000 over 66 months at an interest rate of 30.31% p.a. (fixed). Monthly repayments of £375.50. Total amount payable £24,783.00. Maximum APR 37.9%.
- Must be a homeowner.
- Must be aged 21 or over and under 71 at the end of the loan.
- Must have been a UK resident for at least 2 years.
- Must have a net annual income of at least £15,600.
NerdWallet has partnered with Monevo who will check your eligibility.
Norwich Trust is a lender that may be able to offer loans to people with less-than-perfect credit histories. However, you need to own your own home to apply, so tenants won’t be eligible for a loan from this lender.
Even though you need to be a homeowner, the loans from Norwich Trust are unsecured and don’t use your home as security. Norwich Trust will decide whether to lend to you based on your credit history and overall financial situation, not the value of your property.
Once you have a Norwich Trust loan, you can make overpayments and pay the loan off in full. But there are limits to the amount you can overpay and interest charges may apply if you clear your debt before the end of its term.
Norwich Trust is a sister company of UK Credit, which previously managed the group’s unsecured homeowner loan. In January 2024, UK Credit transferred its unsecured homeowner loan accounts to Norwich Trust. The terms and conditions of the loan remain the same for existing customers.
» MORE: Compare best loans for bad credit
Norwich Trust loans pros & cons
Pros
- The maximum loan amount of £20,000 is higher than some bad credit lenders we’ve reviewed, but keep in mind that you should only borrow what you need.
- You can choose to repay your loan over a term of 10 years, which is longer than most bad credit lenders that we’ve reviewed. However, a longer term means that you will pay more in interest overall.
Cons
- You need to be a homeowner to apply, but your property won’t be used as security.
- It could take two or three days to get a decision on your application.
While we aim to provide accurate information, we cannot guarantee that all details will remain applicable to your specific circumstances. Product terms and conditions can change and you should conduct your own research before applying for any product. This information should not be considered a recommendation, always check the provider’s official terms.
As with any loan, it’s sensible only to borrow what you need and pay it back as quickly as possible based on what you can comfortably afford to repay each month. Before applying for a bad credit loan you must consider your alternatives and whether you could keep making the payments if an unexpectedly high bill landed on your doorstep or you lost your job, for example.
Consolidating multiple debts into one loan can extend the term of your borrowing and increase your cost of borrowing. Missing payments will make an already bad credit score worse and can cause you serious money problems.
Before applying you can also use a loan eligibility service to conduct a soft search across multiple lenders to find out your likelihood of a successful application for several different loans, without affecting your credit score. But check how many lenders the service you use checks and make sure it only uses soft searches.
Other loans may be available in the UK loans market that are not included in this service.
Am I eligible for a Norwich Trust loan?
To be considered for a loan from Norwich Trust, you’ll need to:
- be aged at least 21 years old, and no older than 71 by the end of the loan term
- be a UK resident who has lived in England, Scotland or Wales for at least two years
- own a home (outright or with a mortgage) in England, Scotland or Wales
- have a monthly income of at least £1,300 after tax (or £1,800 if you’re under 30 years old).
Norwich Trust won’t be able to offer you a loan if you are currently, or in the last 12 months have been, in an individual voluntary arrangement (IVA), a debt management plan (DMP) or are subject to a trust deed (Scotland).
If you have been made bankrupt or you’ve been discharged from bankruptcy in the last three years, you also won’t be eligible for a Norwich Trust loan.
Help if you’re struggling with debt
Late repayments can cause you serious money problems. Consolidating multiple debts into one loan can extend the term of your borrowing and increase your cost of borrowing.
If you are struggling with debt, you can seek advice from a debt advice service, such as:
- Citizens Advice
- MoneyHelper (formerly The Money Advice Service)
- National Debtline
- StepChange
- The Money Charity
Norwich Trust loans frequently asked questions
Norwich Trust Limited is authorised and regulated by the Financial Conduct Authority (FCA). The lender’s sister company, UK Credit, previously warned that there had been reports of illegitimate businesses contacting individuals and impersonating them. Be wary if someone contacts you claiming to be from Norwich Trust and don’t tell them any personal information.
Norwich Trust only offers unsecured loans. Even though all applicants need to be homeowners, the loan isn’t secured against your property. Read more about the difference between secured and unsecured loans.
WARNING: Be aware that there are unauthorised firms posing as UK Credit that ask for a fee before you can take out a loan. UK Credit says it will never ask for an upfront fee.