The Most Secured Loan Calculator UK

Approved Loan Amount

£0

Monthly Payment

£0

Total Repayment

£0

Interest Rate

0%
Principal vs Interest
Payment Progress

See the real cost before you sign. FinCalc’s Secured Loan Calculator models repayments, total interest, and payoff timing in seconds, so you decide with eyes open, not crossed fingers. Adjust the rate, term, and fees, and add monthly or one-time overpayments. Watch how each change affects your cash flow and total amount payable. Enter loan amount, term, interest/APR, arrangement/broker fee (pay now or add to balance), and optional property value and current mortgage to estimate LTV and likely pricing bands.

 Instantly get your monthly payment, lifetime interest, total repaid, and a clean, printable amortisation schedule you can share with a partner or adviser. This is high-stakes borrowing; your property is collateral, so the numbers must be bulletproof. Use stress tests to sense-check affordability, compare fee handling, and confirm the plan survives imperfect assumptions. When the math holds, proceed; if it doesn’t, iterate until it does. No hype, just rigorous, practical clarity. Built for real decisions.

What this calculator actually does (and why you’ll care)

Our Secured Loan Calculator turns messy finance into plain-English answers you can act on. Punch in the amount, term, rate, any fees, and optional overpayments. In one pass, you’ll see the monthly repayment, total interest, and total amount payable, plus a full amortisation schedule that shows exactly how each instalment splits between interest and principal.

Where it earns its keep is in the “so what?”

  • True-cost view: Compare add-to-loan vs pay upfront fees and watch how a small fee compounds into big money over time.
  • Sensitivity testing: Nudge the rate ±0.5% and see the delta in pounds and months, no spreadsheets, no guesswork.
  • Overpayment modelling: Try an extra £50/£100 per month or a one-off lump sum and track how your payoff date pulls forward and interest falls.
  • LTV awareness: Enter property value and existing mortgage to estimate LTV. Understand which pricing band you’re likely in and why that matters.
  • Clean summary: Export/print a schedule you can share with a partner or adviser to align on the decision.

Why you’ll care: secured borrowing is cheaper because it’s collateralised, and your property is on the line. That means affordability, fee drag, and LTV all matter more than headline APRs. This tool exposes the real economics before you speak to anyone, so you can decide whether to proceed, adjust your inputs, or walk away entirely. That’s informed borrowing, not wishful thinking.

How to use it (step-by-step, with examples)

You don’t need a finance degree to get this right, just follow the sequence below and let the Secured Loan Calculator do the heavy lifting.

1) Enter the basics

Type in your loan amount, preferred term (in years), and either the interest rate or APR. Keep it realistic: longer terms lower the monthly cost but usually raise the total cost.

2) Tell us how fees are handled

 If there’s an arrangement or broker fee, choose whether you’ll pay it upfront or add it to the loan. Adding it to the loan increases the total repaid because you’re now paying interest on the fee itself. Paying upfront keeps the monthly lower-over-time impact cleaner, but hits cash flow today.

3) Optional overpayments

Set a monthly overpayment (e.g., £50–£100) or a one-off lump sum. The tool will recalculate your payoff date and total interest, so you can see precisely how much time and money you’re saving.

4) Add property details (for LTV context)

Enter your property value and current mortgage balance to estimate LTV. This doesn’t change the arithmetic of your repayment schedule, but it does tell you which pricing band you’re likely to be offered in the real world.

5) Review your results

 You’ll get:

  • Monthly repayment
  • Total interest and total amount payable
  • Estimated payoff timeline
  • Full amortisation schedule (each instalment’s principal vs interest)

LTV estimate and a quick read on pricing risk

6) Stress-test before you fall in love

 Nudge the rate up/down by 0.5%, shorten the term by a year, or toggle the fee handling. Watch how the monthly and total payable respond. If a small change breaks affordability, that’s your signal to rethink the plan.

Worked example (no spreadsheets, no drama):

 Say you model £25,000 over 7 years at 11.9% APR with a £495 fee.

  • Add to loan: your monthly payment nudges up, and your total repaid climbs because the fee now accrues interest.
  • Pay upfront: higher cash hit today, but your total cost drops over the term.
  • Add £75/month overpayment: the schedule shows your payoff date pulling forward and interest shaved off, often meaningfully.

Understanding secured loans

A secured loan is a borrowing that’s tied to an asset, most commonly your home. Lenders accept lower rates because they have a legal claim over the collateral if you don’t keep up with repayments. In practice, that means two things: you’ll often see cheaper pricing than unsecured credit, and the stakes are higher if cash flow gets tight. No sugar-coating it, missed payments consistently, and recovery action can escalate.

For homeowners, this is typically a second-charge loan: your main mortgage remains first in line, and the new loan sits behind it. That order matters. If property values fall or you’re highly leveraged, there’s less equity for the second lender, so risk, and therefore pricing, goes up. Translation: equity is your shock absorber.

Enter LTV (loan-to-value). It’s the ratio of your total secured borrowing to your property’s market value. Lower LTV = stronger equity position = better odds of a sharper rate. Higher LTV pushes you into tougher risk bands. Our approach is simple: use the property value and mortgage balance to estimate LTV so you can sense which pricing shelf you’re likely on before you have an awkward chat with a broker.

Costs are more than the headline APR. Secured products often include arrangement fees, broker fees, valuation fees, and sometimes early settlement charges. Whether you add a fee to the loan or pay it upfront changes both your monthly and total repayable. This is where this secured loan calculator earns its keep: model both paths, then choose the one that fits your cash and your time horizon.

Who is a secured loan for? People with significant equity who need a larger sum, want longer terms, or have credit profiles that make unsecured options expensive. Who should be cautious? Anyone running thin monthly buffers, interest rates can move, and life happens. Net-net: secured loans can be smart, but only when the numbers and your contingency plan hold up under stress.

Rates, APR, and fees (no illusions)

Rates sell the dream; APR tells the truth. The nominal interest rate is the percentage applied to your outstanding balance each period. APR (Annual Percentage Rate) rolls in most compulsory charges (e.g., arrangement fees) to express the true yearly cost of borrowing. That’s why two loans with the same rate can have very different APRs and very different total costs, once fees are accounted for.

Common fee types you should expect:

  • Arrangement fee: lender’s setup cost; sometimes tiered by LTV or loan size.
  • Broker fee: payable to an intermediary; fixed or a percentage.
  • Valuation/legal/admin fees: smaller line items, but they add friction to your totals.
  • Early settlement charge (ERC) / exit fee: if you repay ahead of schedule.

How fees are handled matters. Add a fee to the loan, and you’ll pay interest on it for the entire term, quietly inflating your total repayable. Pay it upfront, and you avoid compounding, but you hit cash flow today. The Secured Loan Calculator lets you model both paths side-by-side so you can pick the least painful reality.

Headline traps to sanity-check:

  • Low rate, fat fee: looks cheap monthly; loses on total cost unless you exit early.
  • Higher rate, tiny fee: may win over the full term, especially on smaller balances.
  • Intro rates / step-ups: if the rate reverts higher later, model that scenario explicitly.
  • Representative APRs: only a portion of applicants actually receive them; your profile and LTV drive the real offer.

Do a quick break-even test: compare Total Amount Payable across options rather than fixating on the monthly. If the fee-heavy deal only “wins” for the first year, but you plan to keep the loan for five years, it’s not a win. Use our calculator to nudge the rate ±0.5%, toggle fee handling, and add a realistic overpayment. If a small change explodes your totals, that’s your red flag. In secured lending, illusions are expensive, precision is cheap.

LTV, equity & risk (know your shelf)

Loan-to-Value (LTV) is the pricing steering wheel. It’s the ratio of your total secured borrowing to your property’s market value. Lower LTV = more equity = better risk tier = sharper pricing. Higher LTV pushes you up the risk curve and can trigger tighter criteria, bigger fees, or outright declines.

Quick math (simple, but decisive):

  • Property value: £300,000
  • Existing mortgage: £180,000
  • New secured loan: £30,000
  • Total secured debt = £210,000 → LTV = 70%

That 70% figure is what lenders care about, not just the size of the new loan. And because second-charge lending sits behind your main mortgage, lenders haircut risk more aggressively at higher LTVs.

Typical “shelves” (not promises, just patterns):

 

  • ≤50–60% LTV: strongest equity buffer; often the best rates/fees.
  • 60–75% LTV: mainstream territory; pricing varies by credit profile and income stability.
  • 75–85% LTV: tighter underwriting; expect higher APRs and more documentation.
  • >85% LTV: niche/limited; small movements in valuation can make or break eligibility.

Valuation reality check: one surveyor’s opinion can shift your LTV several points. A £300k estimate dropping to £285k moves 70% → 73.7 %, enough to bump you into a different pricing band. If your case is “on the bracket,” assume a conservative value when you model.

Equity is your shock absorber:

  • House price moves: A 5–10% dip can push borderline LTVs into higher-risk tiers.
  • Rate stress: If a small rate rise breaks affordability, your buffer is too thin.
  • Fee drag: Adding fees to the balance slightly inflates LTV and compounds interest.
  • Exit options: Lower LTV later makes refinancing or remortgaging easier (and cheaper).

Use the Secured Loan Calculator to enter property value and current mortgage, then test best-case and haircut valuations. If your plan only works at peak pricing and perfect valuations, it’s not a plan, it’s hope. Pressure-test until the numbers hold up when life doesn’t.

Secured vs unsecured vs remortgage (when to pick what)

Picking the right product isn’t philosophical; it’s math, risk, and time horizon. Use this decision lens, then validate the numbers in the Secured Loan Calculator.

Unsecured loan (personal loan), choose when:

  • You need a smaller amount (typically ≤ £15k–£25k).
  • Short-term works (2–5 years), and you want a quick, collateral-free setup.
  • Your credit is solid enough that APRs aren’t punitive.

You don’t want your home at risk or legal charges on the property.
Trade-offs: Higher APRs at bigger balances, tighter affordability tests, lower max amounts.

Secured (second-charge/homeowner loan) choose when:

  • You need a larger sum and/or longer term than an unsecured loan will allow.
  • You have decent equity and can live with a legal charge on your property.
  • Your existing mortgage deal is good (or carries heavy ERCs), so you’d rather not touch it.
  • You want predictable payments and the ability to model fees + overpayments precisely.
  • Trade-offs: Collateral on the line, valuation risk, fees, and potentially slower completion.

Remortgage (replace main mortgage), choose when:

  • You’re out of (or near the end of) a fixed term with low/zero ERCs.
  • The new whole-of-mortgage rate is attractive enough to justify moving everything.
  • You want one payment and potentially a simpler admin footprint.

    Trade-offs: You reprice the entire mortgage balance, not just the new borrowing. With ERCs or if your current rate is materially lower, the total cost can balloon.

Fast comparison heuristics (sanity checks):

  • ERC reality: If early-repayment charges on your main mortgage are chunky, a second-charge often beats a remortgage on total cost.
  • Cheap legacy rate: If your current mortgage is far below today’s market, don’t contaminate it, keep it, and layer the secured loan.
  • Small ticket / short term: Unsecured is usually cleaner and faster.
  • Credit bumps: Secured may price better than unsecured if your profile is borderline, and equity helps offset risk.

How to choose with precision:

Model three paths: unsecured, secured (fee paid vs added), and remortgage with realistic rates and fees. In the Secured Loan Calculator, compare Total Amount Payable and monthly affordability under a small rate stress (+0.5%). If one option still wins after stress, you’ve found your path. If not, the right answer may be “wait, reduce the amount, or build equity.”

Real-world scenarios (case mini-studies)

Use the Secured Loan Calculator to pressure-test the kind of decisions people actually make, not theoretical spreadsheets.

1) Home improvement, not lifestyle inflation

Amira wants £35,000 for a kitchen + roof fix. Property value £420k, mortgage £225k → LTV with new borrowing ≈ 62%. She models 10 years at a representative 9.9% with a £699 fee.

  • Add fee to loan: higher total payable, slightly smoother cash flow.
  • Pay upfront: saves ~£1,100 over the term; monthly is a touch lower after month one.

She stress-tests +0.5% on the rate; monthly still fits the budget buffer. Decision: proceed, fee paid upfront, with £50/mo overpayment to pull the term in by ~10–12 months.

2) Debt consolidation with discipline

Lewis has £20k across cards at ~24% APR. He models a £22k secured loan (includes fees) at 10.9% over 7 years.

  • The calculator shows a monthly saving of ~£220 vs minimums and a total interest slashed vs the status quo, if he stops using the cards.
  • With a £40/mo overpayment, payoff moves ~8 months earlier; total interest falls further.

Governance moment: he builds a “no new balance” rule into his plan. Otherwise, consolidation is just a slower, riskier treadmill with the house on the line.

3) Don’t contaminate a golden mortgage

 Priya’s main mortgage is 2.19% fixed with 18 months left and chunky ERCs. She needs £50k to expand her home office.

  • Remortgage scenario: reprices the whole mortgage at today’s market + pays ERCs, total cost balloons.
  •  Second-charge scenario: 50k over 8 years at 11.2%, £995 fee.

    Calculator comparison (including ERCs) shows second-charge wins on Total Amount Payable and preserves the cheap main rate. She toggles “fee added vs upfront” and settles on upfront plus a planned lump-sum overpayment when her new contract lands.

4) Career upskill without cash-flow whiplash

 Darius wants £18k for a professional course and equipment. Unsecured quotes are 14–17% with a 5-year cap and an uncomfortable monthly payment.

  • Secured at 11.5% over 7–8 years, fits cash flow; fee is £595.
  • He models a bi-weekly equivalent payment (same monthly total, split) to keep behaviour tight, and a one-off £2k overpayment once he graduates.
     The schedule shows interest shaved and term pulled forward, making the longer term a temporary liquidity bridge, not a forever plan.

Overpayments & early repayment (save real money)

Small extra payments do heavy lifting. Two levers matter: regular monthly overpayments and one-off lump sums. Both attack principal earlier, which means less interest charged on future instalments and, typically, a shorter term.

Two ways lenders apply overpayments:

  • Term reduction: keep your monthly payments about the same and shorten the payoff date. This maximises total interest saved.
  • Payment reduction: keep the original term and lower the monthly payment. This helps cash flow but usually saves less interest overall.

Before you fall in love with the savings, check the paperwork: some lenders cap annual overpayments (e.g., 10% of balance), require notice, or charge early repayment charges (ERCs). Others have a small exit/admin fee if you clear the balance entirely. If ERCs are calculated as a % of balance or “X months’ interest,” run that scenario explicitly.

How to model it well:

  • Start with a baseline (no overpayments), then add £25–£100/month and compare the Total Amount Payable and payoff date.
  • Test a lump sum at month 6 or 12, often more efficient than spreading the same amount thinly, provided cash flow allows.
  • Combine both: a modest monthly top-up plus one planned lump sum (bonus, tax rebate, matured savings).
  • Stress-test the rate (+0.5%) to ensure savings still hold under less friendly conditions.

Typical pattern: even a £50/month top-up can pull the schedule forward by many months on mid-size balances. If your lender’s ERC makes early settlement unattractive right now, keep the overpayment discipline anyway, then revisit full redemption when the penalty window closes.

Use the Secured Loan Calculator to compare baseline vs overpayment paths. If the interest saved dwarfs any penalty or fee drift, green light. If not, redirect that cash to a higher-yield use or wait out the ERC period.

Eligibility & credit profile (what lenders actually look at)

Secured lending is still credit lending; equity helps, but it doesn’t erase risk. Expect lenders to sanity-check your ability to repay under stress, not just at today’s calm-water rate. Use the Secured Loan Calculator to see if your numbers would pass the sniff test before you hand over documents.

Core underwriting themes:

  • Income & stability: salary, overtime/bonuses (usually averaged), or self-employed profits (often last 2 years’ SA302s/accounts). Long gaps or volatile earnings get haircut.
  • Debt-to-Income (DTI): total committed credit payments ÷ gross income. Lower is better. If your DTI jumps once this loan is added, pricing and approvals get tougher.
  • Credit history: late payments, CCJs, defaults, arrangements to pay. Older and settled issues carry less weight; recent blips bite.
  • LTV & equity position: the stronger your equity buffer, the more forgiving pricing tends to be, within reason.
  • Affordability stress: many lenders model rate rises (e.g., +1–3%). If that breaks your budget, they’ll decline, or price for risk.
  • Purpose & plausibility: home improvement and consolidation are common; luxury purchases at high LTVs raise eyebrows.

Documentation you’ll likely need:

Photo ID, proof of address, bank statements (3–6 months), payslips or accounts, existing mortgage statement, and consent for a valuation/credit search.

Soft vs hard searches:

  • Soft search: an indicative quote without denting your score.
  • Hard search: full application footprint; too many in a short window can weigh on your file.

Fast self-checks before applying:

  • Can you handle the stressed payment shown by a +0.5% to +1% rate in the calculator?
  • Does a small income shock (loss of overtime, higher bills) still keep you above water?
  • Are you adding fees to the balance when paying upfront? Would keep DTI/LTV cleaner?

Bottom line: equity opens the door; affordability and behaviour get you through it. Build a case that survives stress, on paper and in your budget.

Fees, charges & the true cost of credit

Monthly payments can lie by omission. Fees do the lying. Your job is to drag every cost into the light and make them compete in the Secured Loan Calculator.

What to list explicitly (no “miscellaneous” buckets):

  • Arrangement fee: fixed or % of the loan; sometimes tiered by LTV/amount.
  • Broker fee: flat or percentage; ask if it’s capped.
  • Valuation/legal/admin: smaller line items that still move totals.
  • Telegraphic/transfer & discharge fees: tiny, but real.
  • Early Repayment Charge (ERC) / exit fee: applies on full or partial redemptions.
  • Fee timing: upfront today vs added to loan (i.e., financed).

At Fincalc, you can use other free calculators. 

The quiet compounding problem:

 Add a £995 fee to a 10-year balance, and you’re not paying £995; you’re paying £995 plus a decade of interest. Pay it upfront, and the cash sting hurts now, but your Total Amount Payable drops. The calculator shows both realities in pounds and months, not vibes.

How to compare like a pro:

  1. Build Option A (lower rate, higher fee) and Option B (higher rate, lower fee).
  2. For each, run three paths: fee added, fee upfront, fee upfront + £25/mo overpayment.
  3. Compare the Total Amount Payable and payoff date under a +0.5% rate stress.
  4. If A only “wins” in year one, but you’ll keep the loan 5–7 years, B probably wins in real life.

Watch for junk friction:

  • “Packaged” fees you didn’t ask for.
  • Broker % on gross (including the fee they told you to add, no thanks).
  • ERCs are calculated as months of interest; those can dwarf savings if you plan an early exit.

Bottom line: fees are pricing in disguise. Itemise them, model them, and refuse to be dazzled by a headline rate. The Secured Loan Calculator is built to surface the truth so you can choose the cheapest reality, not the prettiest monthly.

Data, assumptions & methodology (transparency)

No black boxes. Here’s how the Secured Loan Calculator does the math.

Repayments (amortization):

We use standard level-payment amortization with monthly compounding. The payment formula is:
 Payment = r × P / (1 − (1 + r)^−n)
 where P = financed principal, r = periodic rate (annual rate ÷ 12), n = number of months. Early rows are interest-heavy; principal accelerates over time.

APR vs nominal rate:

 Calculations run off the nominal annual rate you enter (or we derive from APR, where applicable). APR display folds in compulsory fees to express the annualized cost; it’s for comparison, not for computing each month’s interest.

Fees treatment:

  • Added to loan: included in P and therefore accrues interest like principal.
  • Paid upfront: excluded from P; they reduce total cost but hit cash today.
    We separate arrangement/broker/valuation/legal so you can see their individual impact on totals.

Overpayments & lump sums:

 We assume overpayments are applied at each month-end after interest accrual. You can choose term reduction (default) or payment reduction if your lender supports it; totals reflect either behaviour.

Rounding & precision:

 Internal math runs to high precision; displayed figures round to 2 decimal places (nearest penny). Minor rounding drift can appear in long schedules; totals reconcile at redemption.

LTV estimate:

LTV = (existing mortgage + new secured loan) ÷ property value. If you enter a haircut valuation, we use that for a conservative shelf check, useful when you’re close to a pricing bracket.

Stress testing:

Rate nudges (e.g., +0.5% / +1.0%) are applied to recompute payment, totals, and payoff horizon. If stressed results break affordability, that’s your early warning.

Why FinCalc (trust builders)

You don’t need another shiny widget; you need a tool you can stake decisions on. FinCalc is built for exactly that: explainable math, clean UX, and zero fluff. Our Secured Loan Calculator is engineered to surface the real cost, fast, so you can move from “maybe” to measurable. If you require an unsecured calculator, you can also use our unsecured calculator. 

Why teams choose FinCalc:

  • Accuracy you can audit: standard amortization, transparent fee handling (add vs upfront), and clear LTV context, nothing hidden in a black box.
  • Live, no-lag modelling: change any input and see repayments, totals, and payoff timing update instantly.
  • Overpayment intelligence: model monthly top-ups and lump sums with proper ERC considerations.
  • Decision-first outputs: printable/exportable schedules and a concise summary you can share with a partner or adviser.
  • Mobile-first UX: built for speed on phones, because most budgeting happens on the go.
  • Privacy by design: we don’t need your name, email, or bank details to run scenarios. Your numbers stay your numbers.
  • Plain-English copy: complex finance translated into language normal humans (and busy advisers) can use on the spot.

Proof points (the ones that matter):

  • Homeowners use FinCalc to compare secured vs remortgage vs unsecured and avoid fee traps.
  • Advisers use it in meetings to pressure-test affordability under small rate stresses (+0.5% / +1.0%).
  • Budgeters use it to set realistic overpayments that actually survive month three.

Our standard: if a feature doesn’t reduce confusion, shorten decision time, or lower total cost, it doesn’t ship. FinCalc exists to make high-stakes borrowing boring, in a good way. Numbers first, then decisions.

Conclusion

 Borrowing against your home deserves zero ambiguity. FinCalc exists to strip away guesswork so you can choose with confidence. Our Secured Loan Calculator shows the monthly payment, total interest, payoff timing, and how fees, LTV, and overpayments change the real cost. Stress-test rates, toggle fee handling, and model lump sums until the plan survives imperfect assumptions. 

If a tiny change breaks affordability, the answer is simple: adjust the numbers or wait. If the schedule stays sane, proceed on your terms, eyes open, budget intact. Print the plan, discuss it at home, and move forward only when the economics make sense. Smart finance is boring, repeatable, and transparent. That’s the point. Start now, refine twice, and make the decision your future self will thank you for. No hype, just rigorous, practical clarity.

Frequently Asked Questions (FAQ)

What exactly is a secured loan?

 Borrowing that’s tied to an asset, usually your home. Because the lender has a legal charge over the property, pricing can be lower than unsecured credit, but the stakes are higher if you miss payments.

 No. It’s a modelling tool, not a credit application. Nothing here touches your credit file.

 Yes. You can model fees as paid upfront (excluded from principal) or added to the loan (included in principal and therefore accruing interest). Results update instantly so you can see the real-world impact.

 For like-for-like comparisons, yes. APR wraps compulsory fees into a single annualised cost. But for your decision, also compare the Total Amount Payable, payoff timing, and how sensitive the plan is to a small rate change.

Lower is better. Sub-60% LTV tends to unlock sharper terms; 60–75% is mainstream; 75–85% gets tighter. Above that is a niche. The calculator estimates LTV from your property value, existing mortgage, and proposed loan.

Usually yes, within lender limits. Even £25–£100/month can pull the payoff date forward and shave meaningful interest. Watch for early repayment charges (ERCs) and annual overpayment caps.

Behaviourally, splitting your monthly payment into two half-payments can mimic an extra half-payment over a year, trimming time and interest. Lenders still settle monthly; this is a budgeting tactic, not a new contract.

 Use the built-in stress test (+0.5% / +1.0%). If that breaks affordability or inflates total cost beyond comfort, reconsider the amount, term, or timing before applying.