How our secured loans calculator work
Introduction to the secured loans calculator
The secured loans calculator determines the monthly repayment of each loan (this includes the capital repayment, interest component and Payment Protection Insurance, if required). It uses information provided by the user when they answer questions regarding the amount they wish to borrow, the term of the loan repayment, their household salary, credit circumstances and personal circumstances. The calculator then returns details of secured loans available and calculates the monthly repayment.
Assumptions made
In order to build a secured loans calculator that applies to everyone and to ensure we do not require users to answer unnecessary questions, we have to make certain assumptions, which are outlined below. Please note the assumptions are applied across all secured loans.
- Each month is of equal length
- Interest charged is calculated on a monthly basis
- The applicant is married if a joint application is submitted
Secured loans filtering
In order to ensure the user only sees secured loans that will be applicable to them in their results, we will filter loans from the process if they cannot meet the user's needs. Please note the filtering is applicable to answers from both applicants if the application is a joint application.
Loans are excluded from the results if:
- The amount the applicant wishes to borrow is less than the minimum or more than the maximum offered
- The repayment period selected exceeds the maximum repayment term
- The applicant's property value is either under the minimum limit for the loan or exceeds the maximum value
- The loan amount plus the outstanding mortgage, plus any outstanding borrowing secured against the property divided by the property value, is greater or smaller than the limits accepted
- The applicant's County Court Judgements (CCJs) exceeds the maximum number
- The number of months the applicant's mortgage is in arrears exceeds the maximum allowed
- The total of CCJs and number of months the applicant's mortgage is in arrears exceeds the maximum
- The applicant's household salary is below the minimum amount required or exceeds the lender's maximum limit
Calculation for secured loans
The loans calculator uses the Payment Protection Premium (if applicable), monthly interest rate, loan period in months and the required loan amount to give the monthly repayable amount. This value is then multiplied by the loan period in months to give the total repayable amount.
How the secured loans calculations work
The calculator looks at many variables when calculating if a loan is applicable for a user. These include some of the following:
- The amount the applicant wishes to borrow
- The repayment period
- The value of the property being used as security
- The applicant's outstanding mortgage
- Any borrowing secured against the property
- If Payment Protection Insurance is required
- The household salary
- The credit history of the applicant
We understand secured loans
Now you know how easy and simple we make it for you find the right secured loan, don’t delay. Go straight to our secured loans calculator.
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