0116 464 5544Secured Loan Calculator
Our secured loan calculator is easy to use and helps you get a quick response when enquiring about the expected amount for your secured loan monthly repayments.
A secured loan is an alternative option to a full remortgage when the client:
- Is tied to a current mortgage that has redemption penalties
- Benefits from an existing low-interest rate mortgage but needs to raise capital
- Is being offered a further advance from the current lender, but at too high a rate
- Is currently on an interest-only mortgage and does not want to alter this
- Is raising capital for any legal purpose, including business, tax bills, additional property, and so forth.
- Has restricted mortgage options due to adverse credit, income, age, equity, and so forth.
- Has recently become self-employed, retired, or has multiple income sources
- Is raising capital on an owned buy-to-let property
- Has been refused a first-charge remortgage
- Requires a loan for a short period of time.
- Needs a loan quickly
- Already has a high LTV
An infographic explaining the benefits, considerations and reasons why it is worth using a secured loan calculator.
Our online secured loans calculator makes it quick and easy to provide an overview of the available options; however, it can be tricky to know exactly which details to enter to obtain a near-accurate result.
All lenders outline their own unique lending criteria and quote interest rates based on various factors. In most cases, credit ratings are used as a basis for interest rates and additional charges.
How much can I borrow as a secured loan?
The amount you can borrow as a secured loan typically ranges from £10,000 to £2,500,000. This loan amount is subject to several factors, such as the value of the property you’re offering as collateral, your creditworthiness, and your ability to repay the loan. Additionally, lenders may consider other aspects like your income, employment status, and existing debts when determining the final loan amount.
Are secured loans easier to get?
Secured loans are generally considered easier to obtain compared to unsecured loans for individuals with less-than-perfect credit histories or those seeking larger loan amounts. This is because secured loans require collateral, such as a property or vehicle, which reduces the risk for lenders, making them more inclined to offer loans even to borrowers with lower credit scores. Additionally, since the collateral serves as security, lenders may be more flexible with terms and offer lower interest rates compared to unsecured loans. However, it’s crucial to note that securing a loan still depends on various factors, including the value of the collateral, the borrower’s ability to repay, and the lender’s specific requirements and criteria.
Is a secured loan cheaper than a personal loan?
Whether a secured loan is cheaper than a personal loan depends on various factors, including the borrower’s creditworthiness, the amount borrowed, and the terms offered by the lender. Generally, secured loans tend to have lower interest rates compared to unsecured personal loans because they are backed by collateral, such as property or a vehicle, which reduces the lender’s risk. This often results in lower interest rates and fees for secured loans, making them potentially cheaper in terms of overall borrowing costs. However, it’s essential to carefully consider the terms and conditions of each loan type, including any associated fees and repayment terms, to determine which option is more cost-effective based on individual circumstances.
Are secured loans bad for credit?
Secured loans themselves are not inherently bad for credit, as they can actually be beneficial for credit when managed responsibly. By making timely payments on a secured loan, borrowers can demonstrate their ability to handle debt responsibly, which can positively impact their credit score over time. However, defaulting on a secured loan can have serious consequences, including damage to credit scores and potential loss of the collateral used to secure the loan. Therefore, while secured loans offer an opportunity to build credit when managed well, borrowers should exercise caution and ensure they can comfortably afford the loan payments to avoid negative effects on their credit.
Are secured loans good for bad credit?
Secured loans themselves are not inherently bad for credit, as they can actually be beneficial for credit when managed responsibly. By making timely payments on a secured loan, borrowers can demonstrate their ability to handle debt responsibly, which can positively impact their credit score over time. However, defaulting on a secured loan can have serious consequences, including damage to credit scores and the potential loss of the collateral used to secure the loan. Therefore, while secured loans offer an opportunity to build credit when managed well, borrowers should exercise caution and ensure they can comfortably afford the loan payments to avoid negative effects on their credit.
What is the minimum credit score for a secured loan?
The minimum credit score required for a secured loan can vary depending on the lender and other factors, such as the loan amount and the value of the collateral provided. Unlike unsecured loans, where credit score plays a significant role in determining eligibility, secured loans are backed by collateral, which reduces the lender’s risk. As a result, some lenders may be more flexible with credit requirements for secured loans, making them accessible to individuals with lower credit scores. However, it’s important to note that while a minimum credit score requirement may not be explicitly stated, lenders will still assess the borrower’s creditworthiness and financial stability before approving the loan. Therefore, individuals with lower credit scores may still be eligible for secured loans, but they may face higher interest rates or stricter terms.
Can you sell your house with a secured loan?
Yes, you can sell your house even if you have a secured loan, but there are specific considerations to take into account. When selling a house with a secured loan, the outstanding balance of the loan needs to be paid off from the proceeds of the sale before transferring ownership to the buyer. Typically, the lender holding the secured loan will have a charge on the property, which means they have a legal right to the property until the loan is fully repaid. Therefore, when selling the house, the proceeds from the sale will first go towards repaying the outstanding loan balance, and any remaining funds will then be disbursed to the seller. It’s crucial to communicate with the lender throughout the selling process to ensure a smooth transaction and to understand any potential implications for the loan repayment.
Additional secured loan fees
Along with fixed or variable rates of interest, additional secured loan fees almost always apply. An initial administration, application, or arrangement fee may be payable at the time the homeowner loan is agreed, which is typically between £250 and £1,000. Additional costs to consider include valuation fees and early repayment fees.
Comparing the market in full with an independent broker is the best way to avoid as many of these additional secured loan fees as possible. Fees vary significantly from one lender to the next, underscoring the importance of comparing the market in its entirety.
Variable versus fixed rate loans
A fixed-rate secured loan will be charged at a rate of interest that remains unchanged during an agreed-upon term, whereas variable interest rates can increase or decrease at any time. Variable interest rates usually fluctuate in response to shifting Bank of England base rates or simply at the discretion of the lender.
In both instances, it is important to consider how much you will pay over the lifespan of the homeowner loan, not just which offer initially appears most competitive.
