Secured Loan Calculator
Enquire with us to get a quick secured loan estimation on your repayment costs.
What is the purpose of using a secured loan calculator?
A secured loan calculator is a financial tool to help borrowers and lenders estimate important aspects of a secured loan. This tool can provide the following:
- Loan Repayment Estimation: It allows users to calculate the monthly repayment amounts based on the loan amount, interest rate, and loan term. This helps borrowers understand how much they will need to pay each month and assess if it fits their budget.
- Interest Cost Projection: The calculator helps estimate the total interest cost over the life of the loan. Since secured loans often involve significant amounts, understanding the interest expense can help borrowers compare different loan offers and choose the most cost-effective option.
- Loan Term Comparison: By adjusting the loan term in the calculator, users can see how changing the duration of the loan affects monthly payments and total interest costs. Shorter terms typically have higher monthly payments but lower total interest, while longer terms reduce the monthly payment but increase overall interest.
- Risk Evaluation: These loans are backed by collateral, like a house or car. The calculator helps borrowers see the financial commitments clearly, ensuring they don’t overextend themselves and risk losing the collateral if they can’t meet repayments.
- Budget Planning: The calculator aids in assessing personal or business finances by providing an accurate picture of the repayment schedule, allowing borrowers to make informed decisions about taking on the loan.
Overall, a secured loan calculator provides clarity, helping borrowers make sound financial decisions and avoid potential debt pitfalls.
How it works
When you apply for a secured loan product through our website, we will search the entire market on your behalf in order to find the most competitive borrowing product in accordance with your individual needs and borrowing requirements.
What we offer
Working with us, you get:
- Streamlined application process.
- Loans from £15,000 to £250,000.
- Borrow from 5 to 25 years.
- Up to 80% LTV.
- Fast decision, usually in minutes.
- No hidden fees or costs.
- All employment types considered.
- Bad credit history – no problem.
Secured loans for homeowners
A homeowner loan is a long-term borrowing product that is secured against your residential property, so you will obviously need to own your own home or be a mortgage holder in order to get one. By applying online using our services, the amount you are entitled to borrow can range from £15,000 to £250,000, depending on your financial circumstances, with repayment terms typically available from 5 to 25 years. When applying for secured finance, you should always remember that your home could be at risk should you find yourself unable or unwilling to meet the repayments at some point in the future.
Bank | Compare Rate |
---|---|
Barclays | Barclays secured loans |
Halifax | Halifax secured loans |
HSBC | HSBC secured loans |
Lloyds Bank | Lloyds Bank secured loans |
Nationwide | Nationwide secured loans |
NatWest | NatWest secured loans |
Post Office | Post Office secured loans |
RBS | RBS secured loans |
Santander | Santander secured loans |
Shawbrook Bank | Shawbrook Bank secured loans |
Skipton Building Society | Skipton secured loans |
Tesco | Tesco secured loans |
Together Money | Together Money secured loans |
Yorkshire Bank | Yorkshire Bank secured loans |
Woolwich | Woolwich secured loans |
Martin Lewis | Martin Lewis secured loans |
We are not affiliated with these banks in anyway, we only provide a comparison service that allows you the choice of a better rate for your loan.
How much can I borrow on a secured loan?
With bridgingloans.co.uk you can borrow up to 80% LTV and secured a loan from anywhere between £15,000 to £250,000.
What is the average interest rate for a secured loan?
While stating a single average interest rate for secured loans in the UK isn’t entirely accurate, a representative range can be provided. Secured loan rates typically fall between 6.30% and 10.7% APR (Annual Percentage Rate).
However, it’s crucial to remember several factors influencing the actual rate you’ll receive:
- Your creditworthiness: A higher credit score translates to a better interest rate.
- Loan-to-Value (LTV) ratio: The lower the percentage of your property’s value borrowed, the lower the interest rate.
- Loan type and term: Fixed rates are usually higher than variable ones, and longer loan terms might come with slightly higher interest.
Is a secured loan cheaper than a personal loan?
Secured loans generally have the potential to be cheaper than personal loans. This stems from the reduced risk for lenders. Since you pledge an asset (like a house) as collateral, they’re more likely to offer:
- Lower interest rates: Due to the lesser risk, lenders can offer a more favourable interest rate compared to unsecured personal loans.
- Larger loan amounts: With the security of the collateral, lenders might be willing to extend a larger sum compared to unsecured options.
Is it good to pay off a secured loan early?
Paying off a secured loan early can be beneficial, but consider these factors:
- Reduced interest: This is the main advantage. You’ll save money by stopping future interest accruals.
- Early repayment charges: Check your loan agreement. Lenders might impose a fee for early settlement, potentially negating some of the interest savings.
Therefore, calculate the potential interest saved against the early repayment fee. If the savings outweigh the fee, early repayment can be advantageous.
However, we recommend prioritising:
- Emergency fund: Ensure you have a sufficient emergency fund to cover unexpected expenses before prioritising early loan repayment.
- Higher-interest debts: Focus on settling high-interest debts (credit cards) first if you have them, as the interest savings might be more significant.