The Secured Loan Monthly Calculator can help you to work out whether you can afford to take out a secured loan by showing you how much it would cost you each month in repayments. First, enter the total amount of the loan, and the number of years over which you have chosen to take out the loan. The next step is to enter the interest rate that you have agreed upon with your loan provider. For example, if you are planning on taking out a loan of £10,000 at a total interest rate of 5.05% over a five-year period, your monthly repayments will cost you £188.94.
Think carefully before you take out a secured loan, because there are significant financial risks involved. The point of a secured loan, and the reason why it is often a cheaper borrowing option than an unsecured loan is that you are entering into a legally-binding agreement with the loan provider that if you are unable to pay back the loan, you are putting up your house as security against the loan. Therefore, carefully consider all your options before proceeding with this type of loan, and ensure that if you do you will be able to afford the repayments. Use the Secured Loan Calculator to help you make this important decision before you request a callback from a loan adviser.