Lender Comparison
Equifinance Ltd vs Mercantile Trust
Equifinance and Mercantile Trust are both mid-tier UK specialist second charge lenders focused on smaller-to-mid loan sizes (£150,000 cap on both). They compete for similar cases but with different credit appetite — Equifinance leans cleaner, Mercantile leans more flexible on adverse.
At a glance
| Equifinance Ltd | Mercantile Trust | |
|---|---|---|
| Min loan | £5,000 | £10,000 |
| Max loan | £150,000 | £150,000 |
| Max term | 30 years | 25 years |
| Max LTV | 85% combined (selected products) | 75% combined |
| Credit tier | Clean to minor adverse | Clean to moderate adverse |
| Rate structure | 2-year and 5-year fixed, then variable revert | 2-year and 5-year fixed, then variable revert |
| Arrangement fee | £795–£1,295 arrangement fee, tiered by loan size | £995 arrangement fee (typical) |
| Completion | Typically 3–4 weeks | Typically 3–4 weeks |
| Property eligibility | Standard UK residential property with current first charge mortgage. Combined LTV cap of 85% on selected products, 80% on standard. | Standard UK residential property in the applicant's name. Combined LTV capped at 75%. |
Which should you pick?
Pick Equifinance for clean and minor adverse at scale
Equifinance's product range covers clean credit and minor adverse with rates from around 7.50% APR on a 5-year fix. Their tiered fee structure makes them competitive on smaller loans. Best for typical UK borrowers with clean credit at competitive LTVs.
Read full Equifinance Ltd profile →Pick Mercantile Trust for moderate adverse and case discretion
Mercantile Trust's human-led underwriting accepts moderate adverse credit beyond Equifinance's typical appetite — rates from around 9.50% APR. Best when the case needs an underwriter to look at the full picture rather than a scorecard decision.
Read full Mercantile Trust profile →Pros and cons
Equifinance Ltd
Pros
- • Specialist focus on second charge — single product line means consistent service
- • Low minimum loan of £5,000 — accessible for smaller consolidation cases
- • Tiered fee structure — competitive on smaller loans
- • Up to 85% combined LTV on selected products
Cons
- • Maximum loan £150,000 — caps below larger lenders like Selina, Pepper, or UTB
- • Rates not the lowest in the market for prime cases
- • Adverse credit appetite limited to minor tier — not for recent CCJs or active arrears
Mercantile Trust
Pros
- • Human-led underwriting — case discretion on complex profiles
- • Accepts adverse credit beyond minor — into moderate tier
- • Relationship-driven approach with accessible senior underwriters
- • Specialist focus on smaller-to-mid loan sizes
Cons
- • Maximum loan £150,000 — caps below larger lenders for big consolidation
- • Rates not the lowest in the market for prime cases
- • Combined LTV cap of 75% — limited at higher LTVs
Frequently asked questions
What's the difference between Equifinance and Mercantile Trust?
Equifinance is a specialist UK second charge lender for clean and minor adverse credit cases with rates from around 7.50% APR. Mercantile Trust accepts a wider adverse credit range with human-led underwriting — rates from around 9.50% APR. Both cap at £150,000 maximum loan. Equifinance wins on rate for cleaner cases; Mercantile wins on adverse credit case discretion.
Is Equifinance cheaper than Mercantile Trust?
Yes — on clean and minor adverse cases that both lenders would accept, Equifinance's 7.50% APR is materially lower than Mercantile's 9.50% APR. The pricing gap reflects the different credit tiers each lender specialises in.
Should I pick Equifinance or Mercantile Trust for a secured loan?
Pick Equifinance if your credit is clean or only minor adverse and you want the lower rate. Pick Mercantile Trust if your credit profile is moderate adverse (multiple historical defaults, older CCJs, recent missed payments) where Equifinance is likely to decline but Mercantile's human underwriters will read the full picture.
Get quotes from both lenders
Our advisers quote Equifinance Ltd and Mercantile Trust side by side against your specific criteria — loan size, LTV, property type, credit profile.