Secured Loan Calculator UK
£50,000
10 years
| Item | Value |
|---|---|
| Monthly Repayment | £0.00 |
| Total Repayable | £0.00 |
| Interest Paid | £0.00 |
| APRC Estimate | 0% |
| LTV | 0% |
| Broker Fee (8%, cap £3,950) | £0 |
| Lender Fee | £0 |
| Gross Loan | £0.00 |
| Equity Remaining | £0 |
How to Use
- Enter loan amount, term, rate and property details.
- Toggle fees or payment type for scenarios.
- Review LTV (keep under 90%); adjust if overborrowing flagged.
- Outputs update live; test short/long terms for affordability.
Calculation Method
Monthly repayment derives from P × [r(1+r)^n] / [(1+r)^n – 1], with P as principal (loan + fees), r as monthly rate, n as months. APRC factors all costs over term. LTV = (mortgage + gross loan) / property value × 100. Equity = property value – (mortgage + gross loan).
Common Questions
- Minimum age? 18+; repay by 80 typically.
- Bad credit? Possible; lenders assess equity/income over score.
- Early repayment? Fees 1-5% in fixed period; some no-penalty plans exist.
- Risk if miss payments? Lender may seek court repossession order.
- Self-employed? Yes, with accounts/tax returns.
Secured vs Unsecured
| Aspect | Secured | Unsecured |
|---|---|---|
| Amounts | £5k-£500k+ | £1k-£50k |
| Terms | 3-30 years | 1-7 years |
| Rates | 3-15% | 5-99% |
| Security | Home equity | None |
| Approval | Flexible | Strict credit |
Avoid These Errors
- Ignoring fees inflating gross by 10-15%.
- Overlooking LTV limits cutting max borrow.
- Short term spiking payments unaffordably.
- Not budgeting post-loan outgoings.
- Missing variable rate rises post-fixed.
References
- Financial Conduct Authority. (2025). CONC 4.5 – Creditworthiness. FCA Handbook.
- Bank of England. (2025). Understanding Secured Lending. Monetary Policy Report.
- MoneyHelper. (2025). Homeowner Loans Guide. Official UK Debt Advice Service.
- Financial Ombudsman Service. (2025). Complaints about Second Charge Mortgages. Annual Review.