Secure loan calculator: the crucial tool for your investment plans

Before using a secure loan calculator, investors should understand exactly what a secured loan is. Thankfully, secured loans are our bread and butter here at Market Financial Solutions.

Secured loans are those that allow borrowers to acquire finance while using an asset as “security” for the loan. The loan will be “secured” against this asset, which will often be a property. Where borrowers don’t keep up with repayments (known as defaulting on the loan), lenders can sell the security to recoup their capital.

Generally, secured loans will be first charge – the principal loan on a property. But, borrowers can get a secured second charge, or third charge loan for a property investment. Although, the latter options tend to be more costly for borrowers, given that they pose more risks for a lender, which may find itself down the pecking order for repayments.

Some lenders may allow borrowers to utilise other forms of security. Typically, this may include commercial equipment, high value vehicles, or even artwork. At Market Financial Solutions, we only accept property as security for our loans.

Specialist secured loans can help property investors who find themselves stuck in a pinch. They can facilitate investments in the face of chain breaks, tight deadlines, and complicated circumstances. But, before investors dive into this world, they’ll likely want to utilise a secure loan calculator to figure out the best route forward.

Why use a secure loan calculator?

Put simply, a secure loan calculator can help users budget for their investment. Our secure loan calculator allows investors to see how much they may be able to borrow, how much it’ll cost to repay, and whether we can provide them with the specialist finance they require.

What’s more, our calculator can take into account a user’s specific circumstances, which may be difficult to do with a simple brochure or website. This could include complex payment plans, different personal backgrounds, and more.

It’s always worth keeping an eye on potential costs as they could rise with little notice, and give investors a nasty surprise. To illustrate: construction costs rose recently as Red Sea shipping disruption hit builders across the UK[1]. Suddenly, developers, fix-and-flippers, and other property investors could have seen their costs jump due to an external shock they had no control over.

But, by using a secure loan calculator as the news emerged, they may have been able to factor in these added costs, and respond accordingly.

How to use the Market Financial Solutions secure loan calculator?

Our secure loan calculator is easy to use, and only requires a few inputs from users. To start with, it needs to know what type of property the finance is for, and some information about the applicant.

Then, users will need to enter a property value, the monthly rent of the property, and preferred term. Finally, we’ll need to know what kind of interest payment plan users will want to engage with, and they’ll be able to experiment with different interest rates and arrangement fees.

As users enter these details, results will be updated in real time. A gross loan amount will be displayed, as will a net loan amount, and an applicable LTV. Across our range of specialist products, our loans start at £100,000, and can stretch to £10,000,000 for a buy-to-let mortgage.

What needs to be remembered, however, is that the results will be calculated estimations. To get exact figures, users will need to get into contact with one of our underwriters.