To use our free secured loans calculator, enter your property’s equity to unlock competitive rates and preferable loan terms.
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Overall representative example If you borrow £43,000 over 16 years at a rate of 10.25% variable, you will pay 192 instalments of £505.18 per month and a total amount payable of £96,994.56. This includes the net loan, interest of £49,404.56, a broker fee of £3,995 and a lender fee of £595. The overall cost for comparison is 12.7% APRC variable.
Also known as a homeowner loan or a second-charge mortgage, a secured loan uses the equity in your home as collateral. As the calculator above demonstrates, that can allow you to borrow larger amounts at more competitive rates.
BUT, since you’re using your house as security, it can be repossessed if you don’t keep on top of your loan repayments. So it’s not a decision to be taken lightly, to say the least.
Indicative market rates vs personalised quotes
Lenders tout the “representative APR” of their loan, but the reality is that if you get approved for a loan from that lender, it may offer you a different rate. Your rate will depend on your unique circumstances – your credit record, your income and outgoings, your home, etc.
So although we’re fiercely proud of this calculator, it does have its limitations! That’s because it doesn’t know your situation… It depends on the representative rates. To find out the best rates available to you specifically, from a selection of lenders, we recommend that you speak to a broker, such as Loans Warehouse, which can offer you tailored quotes and help you navigate the process.
Eligibility criteria for a secured loan
To apply for a secured loan, you will usually need to own enough equity in your property to cover the amount you are borrowing.
You will also need to meet the following criteria to qualify for any loan product in the UK:
Be at least 18 years old
Be a UK resident
The lender you choose to borrow from might have additional eligibility requirements, make sure you read and understand these completely before you apply, as this could affect your credit score.
How long does it take to get a second-charge mortgage?
You can usually expect a little bit more admin when applying for a secured loan compared to an unsecured loan, as the lender will have to verify the value of your property and if you have any other borrowing secured against it. But. unlike regular mortgages, a second-charge mortgage usually takes less time.
Frequently asked questions
Secured loans, also known as a homeowner loan, can be used for a range of things, such as the following:
Buying a new car
Paying for a wedding
Home improvement
Buying furniture
Paying for a holiday
Consolidating debt
How much you can borrow on a secured loan depends on the lender you choose to go with, your financial position and your borrowing history. However, that being said, secured loans usually range from £10,000 to £100,000.
If your credit history is not so squeaky clean, you could still be eligible for a secure loan. However, you might have a higher interest rate.
Though your credit score may drop at first because of hard credit checks carried out by the lender, keeping on top of your regular secured loan repayments could help build a positive credit history. However, missing payments will also negatively impact your credit score and could lead to the repossession of your collateral.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Emily Herring is a Publisher at Finder specialising in credit-based products including credit cards and business and personal loans. Emily has recently joined the Investments team. She has a Masters in Creative Writing & Publishing and a Bachelor of Arts in Communication & Media.
Looking for a great deal on a £40,000 personal loan. We explore all your options and explain how to find the best one.
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