Secured Loan Calculator UK
Calculate monthly repayments, total interest, and full cost of borrowing for homeowner loans
Last updated: March 2026
Secured Loan Repayment Calculator
Enter your loan details to calculate monthly repayments and total cost of borrowing
Typical Secured Loan Rates UK by Loan-to-Value (LTV)
Indicative rates as at early 2026. Your actual rate depends on credit profile, income, and lender criteria. Always get a personalised quote before applying.
| LTV Band | Typical APR Range | Who Qualifies | Example: £50,000 over 10 years |
|---|---|---|---|
| Up to 60% LTV | 5–7% | Strong credit, significant equity | ~£530–£581/month |
| 61–75% LTV | 7–10% | Good credit, moderate equity | ~£581–£661/month |
| 76–85% LTV | 10–15% | Fair credit or CCJs, less equity | ~£661–£807/month |
| 86–90% LTV | 15–25%+ | Adverse credit, specialist lenders | ~£807–£1,058/month |
What Is a Secured Loan?
A secured loan is a form of borrowing in which the lender takes a legal charge over an asset — in most UK cases, your residential property — as security for the debt. If you fail to maintain repayments and default on the loan, the lender has the right to apply to court for possession of the secured asset and sell it to recover the outstanding balance. This is the fundamental trade-off of secured borrowing: access to more money at lower rates, in exchange for pledging an asset you cannot afford to lose.
In the UK, secured loans on residential property are also known as homeowner loans, second charge mortgages, or home equity loans. They are distinct from your main (first charge) mortgage and are regulated by the Financial Conduct Authority (FCA) under the Mortgage Credit Directive (MCD), which was implemented in the UK in 2016 and gave secured loans the same level of regulatory protection as residential mortgages. This means lenders must carry out thorough affordability assessments, provide a standardised European Standardised Information Sheet (ESIS), and give borrowers a mandatory seven-day reflection period before the loan is finalised.
Secured Loans vs Unsecured Loans
The key differences between secured and unsecured borrowing in the UK are significant. Secured loans are backed by property, which means lenders face lower risk and can offer: larger amounts (typically £10,000 to £500,000 vs up to £25,000–£50,000 for unsecured personal loans), lower interest rates (5–15% APR for secured vs 6–30% for unsecured), longer repayment terms (up to 25 years vs typically 7 years unsecured), and greater accessibility for borrowers with impaired credit histories.
Unsecured loans (personal loans) are typically faster to arrange (same-day decisions are common), involve no risk to your home, and require less paperwork. They are well-suited to smaller borrowing needs under £20,000 where the borrower has a strong credit profile. For amounts above £20,000–£25,000, or where the borrower has an adverse credit history, a secured loan often becomes the more practical — though higher-risk — option.
Second Charge vs First Charge Mortgages
A second charge mortgage sits behind your primary (first charge) mortgage in the ranking of creditors. If you were to default and the property were sold, the first charge lender would be repaid first from the proceeds, with the second charge lender taking whatever remained. This additional risk for second charge lenders is reflected in higher interest rates compared to first charge mortgages.
Second charge mortgages are particularly useful when you want to raise capital without remortgaging your existing first charge mortgage. This may be sensible if your current mortgage has an attractive fixed rate that would be lost on remortgage, if you face early repayment charges on your existing mortgage, or if your circumstances have changed in a way that makes it difficult to obtain a new first charge mortgage on competitive terms.
How Lenders Assess Affordability
Since the implementation of the Mortgage Credit Directive in 2016, secured loan lenders are required to conduct a thorough affordability assessment before approving any application. This considers your gross income (salary, self-employment income, rental income, pension, and benefits may all be included), your existing financial commitments (including your first charge mortgage payment, other loans, credit cards, and hire purchase agreements), and your essential living expenses.
Lenders will also conduct a credit check, considering your credit score, payment history, any county court judgements (CCJs), defaults, individual voluntary arrangements (IVAs), or bankruptcies. They will also assess the loan-to-value (LTV) ratio — the combined outstanding balance of all mortgages and secured loans as a percentage of the property's current market value. Most mainstream lenders cap secured loan LTV at 80–85%; specialist lenders may go higher but at substantially elevated rates.
CCJs and Adverse Credit
A County Court Judgement (CCJ) does not automatically disqualify you from obtaining a secured loan. Because the loan is backed by property, specialist second charge lenders operate in the adverse credit market and will consider applications from borrowers with CCJs, defaults, missed payments, or even recently discharged bankruptcies. The terms will reflect the additional risk: higher interest rates, potentially lower LTV caps, and more rigorous income verification.
If you have adverse credit and are considering a secured loan, it is strongly advisable to use an FCA-regulated secured loan broker who specialises in this market. Brokers have access to lenders and products not available directly to consumers and can match you with the most appropriate lender for your specific circumstances. Ensure any broker is authorised and regulated by the FCA (you can check the FCA Register at register.fca.org.uk).
Finding the Best Secured Loan Rate in the UK
The secured loan market in the UK is not as straightforward to compare as unsecured personal loans. Rates are personalised based on your individual credit profile, property value, and LTV. Many of the best rates are only available through brokers. Key lenders in the UK second charge mortgage market include Shawbrook Bank, Together Money, Pepper Money, West One Loans, United Trust Bank, and Spring Finance, among others.
When comparing secured loans, look beyond the headline monthly repayment and focus on the Annual Percentage Rate of Charge (APRC) — a standardised measure of the total cost including fees and charges expressed as an annual rate. Also check: any early repayment charges (which can be substantial on fixed-rate products), arrangement fees (typically £395–£1,995 for mainstream lenders), valuation fees, and legal fees. The total cost of borrowing shown in this calculator includes the loan amount plus all interest over the full term.
Worked Examples: Secured Loan Repayments
Example 1: £30,000 at 7.5% over 7 years
- Monthly repayment: £462
- Total interest paid: £8,798
- Total amount repayable: £38,798
- Suitable for: homeowner with approximately 70% LTV and good credit history
Example 2: £75,000 at 9% over 15 years (with £995 arrangement fee added to loan)
- Total loan balance (including fee): £75,995
- Monthly repayment: £771
- Total interest paid: £62,843
- Total amount repayable: £138,843
Example 3: £50,000 at 15% over 10 years (adverse credit rate)
- Monthly repayment: £807
- Total interest paid: £46,800
- Total amount repayable: £96,800
- Warning: at this rate, total interest paid exceeds 93% of the original loan amount over the term
Sources & Methodology
Monthly repayment figures are calculated using the standard amortisation formula. Rate benchmarks are derived from lender rate cards published in early 2026.
- FCA — Mortgages and secured loans consumer guidance
- FCA Register — check if a lender or broker is authorised
Disclaimer: This calculator is for illustrative purposes only. Results do not constitute a loan offer or financial advice. Your actual rate will depend on your personal circumstances. Your home may be repossessed if you do not keep up repayments on a secured loan. Think carefully before securing any debt against your property. Always consult an FCA-regulated financial adviser.
How This Secured Loan Calculator Works
This calculator uses the standard mortgage amortisation formula to compute equal monthly repayments. Enter your loan amount, annual interest rate, term in years, and any arrangement fee (which is added to the loan balance). The calculator shows your monthly repayment, total interest paid, and the total amount repayable over the full term.
The amortisation formula used is: M = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P is the principal (loan amount plus any fees added), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (years × 12).
Key Information
The rate you receive on a secured loan depends primarily on your loan-to-value ratio, credit history, income, and the lender's current pricing. The rates shown in the reference table are indicative benchmarks for early 2026. Always obtain a personalised quotation from an FCA-regulated lender or broker before making any financial decision.
Source: Standard amortisation formula. Rate benchmarks from published lender pricing, early 2026.
Secured vs Unsecured Loan — Key Differences
| Feature | Secured Loan | Unsecured Personal Loan |
|---|---|---|
| Collateral required | Yes — property | No |
| Typical amount | £10,000–£500,000 | £1,000–£50,000 |
| Typical APR | 5–15% | 6–30% |
| Maximum term | Up to 25 years | Up to 7–10 years |
| Home at risk if you default | Yes | No |
| Bad credit considered | Often yes (specialist lenders) | Less common |
| FCA regulation framework | MCD / MCOB rules | Consumer Credit Act |
Source: FCA consumer guidance on mortgages and secured lending