Long terms, more interest
Secured loans can run for longer than personal loans, so the same payment covers a bigger loan. But a longer term adds a lot of interest, and your home is at risk if you can't pay.
Worked example
£400 a month at 8% over 15 years would repay about £41,856.24, with £30,143.76 of interest. Over 10 years, it would repay about £32,968.59, with £15,031.41 of interest.
Before you borrow
Your home may be repossessed if you don't keep up repayments on a loan secured on it.
This is an estimate. Lenders make their own decision based on your full circumstances and credit history.
Inputs for the secured loan affordability calculator
Monthly payment you can afford
What you could comfortably repay each month after your other outgoings.
Interest rate (per year)
The annual interest rate on your secured loan. The rate shown is only an example, so enter the rate from your quote.
Term
How many years you'd repay over. A longer term lets you borrow more for the same payment but costs more interest.
CALCULATOR QUESTIONS
Secured loan affordability calculator questions
How much secured loan can I afford?
Enter the payment that fits your budget above to see the loan it would repay.
Should I borrow over a long term?
It lowers the payment but greatly increases the interest, as the example shows.
What else limits a secured loan?
Your home's equity and the lender's loan-to-value limit.
What's the risk?
Your home may be repossessed if you don't keep up repayments on a loan secured on it.