How a UK secured loan repayment is worked out
A secured loan in the UK is usually a second charge mortgage: a loan secured on your home behind your main mortgage. Lenders quote an interest rate, not an APR, and charge it monthly at one twelfth of the yearly rate on the loan including any fees added to it. This calculator does the same, so the instalments match the way lenders' own examples are built.
With the example inputs, £30,000 over 10 years at 8% costs £363.98 a month. That is £43,677.93 to repay in all, of which £13,677.93 is interest. The 8% is only an example: enter the rate from your offer.
Worked example with fees and a change of rate
Pepper Money publishes a representative example for a £40,000 loan over 16 years. Add a £3,000 broker fee and a £595 lender fee and the loan the interest is charged on is £43,595.00. At 9.2% fixed for five years, then 9.6%, the repayment is £434.49 a month for 60 months, then £442.52. With a £95 exit fee the total repayable is £84,577.09 and the APRC is 11.36%. Pepper's own figures are £434.49 then £442.52 with a total of £84,577.09 and an APRC of 11.4%; this calculator is within a few pence because it keeps full precision until the end.
The APRC (annual percentage rate of charge) is the effective yearly rate on the cash you receive, so it includes the fees and the change of rate. It is higher than the interest rate because the fees are borrowed too. The FCA Handbook sets out how an APRC is defined in MCOB 10A; this calculator estimates it from the instalments you enter and is not a lender's disclosed figure.
Fees are borrowed too
Broker and lender fees are usually added to the loan, so you pay interest on them for the whole term. A £3,000 broker fee and a £595 lender fee, £3,595.00 in all, lift a £30,000 loan to £33,595.00 and the repayment to £407.60 a month. The total charge for credit is £18,912.01 and the APRC is 11.2%.
The FCA's 2026 review of second charge mortgages found that intermediary fees typically represented 2.5% to 15% of the loan, with most between 10% and 12.5%, and that these are in addition to the lender's fees. The broker fee has no default here because it varies so widely: type the amount from your quote.
To see what a broker fee costs against a loan with none, use the secured loan no broker fee calculator.
Choosing a term
A longer term lowers the payment but means paying interest for longer. On the example loan, five years costs £608.29 a month and £6,497.51 in interest, 15 years costs £286.70 a month and 25 years costs £231.54 a month. The results list the payment and total repayable at 5, 10, 15, 20 and 25 years so you can compare them at once.
What a monthly budget could borrow
Enter what you can afford each month and the calculator works backwards. A budget of £350 a month at 8% over 10 years could repay a loan of up to £28,847.52, after taking off any fees added to the loan. It uses the first interest rate for the whole term.
Combined loan to value
Lenders look at the combined loan to value (CLTV): your first mortgage plus the new loan, as a share of the property's value. With a £300,000 home, a £150,000 mortgage and a £30,000 loan the CLTV is 60%. The lender uses its own valuation, and each lender has its own limit.
To see how much more you could borrow at a limit, use the secured loan LTV calculator.
What this calculator leaves out
It assumes equal monthly payments, one change of rate at most and no early repayment charge. It does not check that you qualify, and the lender decides the rate and fees. Your home may be repossessed if you do not keep up repayments on a loan secured on it.
For a simple repayment figure, see the secured loans calculator.
Use the right country page
This page uses UK terms such as second charge, broker fee and APRC, and is in pounds. For a loan secured by savings, a certificate, a vehicle or a home in the United States, open the US page.
The US secured loan calculator uses dollars, an origination fee and a nominal APR.
Inputs for the secured loan calculator
Amount to borrow
The loan you receive, before any fees added to it.
Loan term
How many years you will take to repay. Lenders commonly offer 3 to 30 years.
Interest rate
The yearly rate on your offer, charged monthly at one twelfth. The 8% shown is only an example.
Fixed rate period
Years at the first rate before the lender's later rate applies. Enter zero if the rate never changes.
Interest rate after the fixed period
The rate that applies once the fixed period ends. Used only when you enter a fixed period.
Broker fee
The fee your broker quotes in pounds. It has no default: enter the amount from your quote, or zero.
Lender fee
The lender's product or arrangement fee in pounds.
Exit fee
A fee paid when the loan ends, if your offer has one.
Fees are
Whether fees are added to the loan, deducted from it or paid in cash. Added is usual for second charge loans.
Property value
What your home is worth, used for the combined loan to value.
Mortgage balance
What you still owe on your first mortgage.
Monthly budget for repayments
What you can afford each month, to see how much that could borrow.
CALCULATOR QUESTIONS
UK secured loan calculator questions
What is a secured loan?
A loan secured on something you own, usually your home. If you do not repay, the lender can take the asset. In the UK a loan secured on your home behind your main mortgage is called a second charge mortgage or homeowner loan.
Why does this ask for an interest rate and not an APR?
Second charge lenders quote a rate and charge it monthly at one twelfth. Their examples reconcile to that method, with the APRC shown separately.
What is the APRC?
The annual percentage rate of charge is the effective yearly rate on the cash you receive, including fees. On the fee example it is 11.2%, against a rate of 8%.
Are fees added to the loan?
Usually, which means you pay interest on them. Choose deducted or paid in cash if your offer works differently.
How much can I borrow?
Lenders decide using your income, credit history and the equity in your home. The budget result shows how much a monthly payment could repay: £28,847.52 for £350 a month at 8% over 10 years.
Can I lose my home?
Yes. Your home may be repossessed if you do not keep up repayments on a loan secured on it.
What happens if the rate changes?
Enter the fixed rate period and the rate that follows. The calculator shows the payment for each stage; it cannot predict a variable rate.