How much will you repay on your secured loan?

Secured Loan Calculator

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If you want to save money on a secured borrowing product such as an affordable homeowner loan or a competitive second charge mortgage, then use our quick and easy online secured loan repayment calculator.

Secured loan products

  • Nonrecourse Loans: Nonrecourse secured loans offer limited liability to the borrower. With all types of secured loans, the borrower risks repossession of his or her collateral if he or she stops making payments. The lender may then seize and sell the asset to recoup their losses. With a nonrecourse loan, after seizing the asset, the borrower’s obligation is fulfilled. If the sale of the asset does not cover the remaining balance of the loan, the borrower is not required to pay the remaining balance.
  • Mortgages: Home loans are mortgages. In fact, these two terms are often used interchangeably. However, a mortgage is not always a home loan. An individual may obtain a second mortgage when he or she needs access to more funds. Homeowners who tap into their equity with home equity loans are obtaining second mortgages as the loans are secured with the homes. Business owners may also take out mortgages to fund their business operations. This loan is still considered a mortgage, even though it was not obtained for the purpose of buying a home.
  • Home Loans: Most home loans are secured loans, as homes are often the biggest asset that people ever purchase. To reduce the risk to the lender, they need security. The home loan is typically secured with the home itself.
  • Car Loans: Car loans are secured loans that are secured with the car being purchased. If the borrower stops making payments, the lender can seize the car.
  • Boat or RV Loans: Besides cars, people can get secured loans to purchase any type of vehicle. There are loans for boats, recreational vehicles, motorcycles, and other types of transportation.
  • Secured Personal Loans: Personal loans may be secured or unsecured. With a secured loan, borrowers may qualify for better interest rates. A secured loan may also be needed for those without good credit. These details also apply to secured personal credit cards. In fact, bad-credit loans are typically secured loans. These loans often require the borrowers to use their homes as collateral. However, some lenders may accept vehicles as collateral if the value of the vehicle covers the borrowing amount.
  • Secured Business Loans: Secured business loans may be used for a wide variety of purposes. A variety of types of collateral may also be used to secure the loan. Businesses that take out loans may secure the loan on their real estate holdings, land, equipment, machinery, and other valuable assets.

Secured homeowner loans and second-charge mortgages

With UK borrowing restrictions now tighter than ever, many applicants experience tremendous difficulty in terms of being approved for unsecured personal credit. However, if you are a homeowner and you are looking to borrow a substantial amount of money, from £25,000 upwards, there is a far cheaper alternative offering improved repayment flexibility and much higher rates of approval, even if your credit rating has let you down in the past.

Secured homeowner loans, which are sometimes known as second-charge mortgages, are long-term borrowing products that are secured against a homeowner’s property. If you own the property outright, you can typically borrow anywhere up to 80% of the open market value of your home, provided you are willing to risk your home on the off chance that you will be unable to make the repayments at some point in the future.

If the property is already mortgaged, your homeowner loan will be secured on a second-charge basis against any remaining equity once the outstanding mortgage amount has been subtracted from the value of your property. Although there will always be some level of risk involved, there are a number of actions you can take to reduce the chances of this happening. First of all, always make sure that you borrow responsibly and within your means.

You should never take out a secured loan that you cannot realistically afford to pay back, and a responsible lender will always check to ensure you can afford to pay back what you borrow as part of the application process itself. Secondly, there are a number of payment protection plans available that can be added to your loan product as insurance against ill health, loss of employment, and death.

Secured loans for individuals and businesses

Mortgages are the most common types of secured loans. However, there are many different types of secured loans, including loan products designed specifically for businesses or individuals. A secured loan is just a loan that includes some type of security, such as a home. Other than real estate property, loans may be secured with almost anything of value.

Benefits of secured loans for lenders and borrowers

Lenders enjoy secured loans because they are low-risk investments. They get to collect interest during the life of the loan with less risk that the borrower will default. Due to the risk of losing the collateral, people often prioritise secured loans over unsecured loans. If the borrower does stop paying on the loan, the lender may sell the asset. This puts more pressure on the borrowers to pay their loans on time.

When to consider a secured loan

If you live in a mortgaged property that you own and you are looking to borrow a substantial sum of money, in the region of £25,000 to £250,000, you might be able to gain access to these funds by remortgaging or switching providers. However, you might already have an affordable mortgage product with low repayments in place, which would make this an impractical option from the start.

Additionally, some residential mortgages have hefty exit fees and early repayment charges, and in situations such as this, many people prefer to take out a second mortgage or secured homeowner loan instead. A homeowner loan is an affordable borrowing product that can be used for a large number of helpful reasons.

Popular uses include home improvement (which can add serious additional value to your property), debt consolidation (lowering your monthly outgoings and improving your finances), and covering the cost of purchasing a new family car, paying for a holiday, or financing a wedding.

As long as you have sufficient equity in your property, a secured homeowner loan is one of the cheapest types of finance available, and the repayment terms can be structured to fit your personal finances flawlessly. Unlike personal loans, which are only available to those with a good credit rating, homeowner loans are suitable for all manner of applicants, including the self-employed (with no proof of income) and even those with CCJs.

For more information about secured homeowner loans, second-charge mortgages, or any other type of property finance, call now and speak to one of our FCA-authorised borrowing experts. With a choice of over 100 lending facilities and access to dozens of different loan products, we will find you the most competitive borrowing option with the lowest rates and costs.

Collateral security vs. additional security

Most secured loans either use additional security or collateral security. Collateral security refers to loans where the security is the item that is being purchased. With a car loan, the car is the security. When buying equipment for a business, the equipment is the collateral. Additional security is used to secure additional funding or lower interest rates.

Businesses may use this option when applying for business loans to fund expansion or their starting costs. The additional security typically comes from real estate properties, such as a building or land. Within these categories, there are many types of secured loans, including mortgages, car loans, boat loans, and secured personal loans.