Customer Enquiries 0161 464 3944 For Coronavirus (Covid19) help and support click here Want to understand more about how loan calculators work? How do loan calculators actually work? Secured Loans > Our Loans > Homeowner Loans > How do loan calculators actually work? If you’ve ever applied for any type of loan online, particularly a secured homeowner loan, chances are that you will have come across a loan calculator at one time or another – usually as a vital first step in the loan application process. Secured loan calculators are generally designed to inform the applicant roughly how much their loan is going to cost over a specific period of time so that they can see an estimated cost of their monthly repayments and rate of interest. It always pays, in the long run, to get an overview of the terms of a loan before submitting a formal application. By calculating secured loan repayments first, the applicant will be in a far better position to decide whether this is the best credit option available to them. If so, they can then start to plan their budget and get a better feel for exactly how much money they can afford to borrow over a certain time period. All that said, one question is often left unanswered: how do loan calculators actually work? Let’s take you through the range of factors that play into getting your estimate. Know your limits One of the most important details of any homeowner loan calculator is the ability to clearly see both the minimum and maximum amounts that are available to borrow from a particular lender. Loan rates tend to be tiered so that, as a rule of thumb, the more you are looking to borrow, the lower the overall rate of interest you will be charged as part of your repayment plan. So, you may pay a lower rate of interest to borrow £5,000 than you would £6,000. It’s largely the same case with repayment periods, whereby the shorter the repayment period, the lower total amount of interest that is due to be repaid. Most secured loan calculators will offer a loan duration from anywhere between 12 months and 20 years. In most cases, a secured loan option will involve a far higher maximum limit because the loan is ‘secured’ against a person’s property or another valuable asset as a form of collateral should they fail to fulfil their agreed repayment schedule as agreed. Understanding estimations It’s important to recognise that loan calculators can only provide you with a rough estimation of the terms of your loan that is based on the average person’s financial situation. When it comes to submitting an application, most lenders will also take into account individual factors such as credit history and financial reliability on a case-by-case basis. This may affect the terms of the loan calculation that the applicant initially completed. Why credit history matters More often than not, when you apply for a secured loan you will be subject to a personal credit score check which aims to clarify how you have managed debts previously. The good news is that Evolution Money will only initially conduct a quotation credit search which leaves a soft footprint on your credit file rather than a hard footprint that would be left by a full credit search. A soft footprint does not affect your credit score and Evolution will only conduct a hard footprint credit search if you proceed with a loan. If you have regularly missed payments in the past, a low credit score may result in a higher rate of interest, or it may even be deemed too low for approval and your loan application could be turned down. There are a number of independent credit score estimation providers available online, which allow applicants to ascertain how likely it is that they are eligible for a loan. However, Evolution Money do not rely on credit scores alone, we take the time to understand your personal circumstances. Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk Latest News Why ‘kerb appeal’ really matters We’ve investigated what exterior features can make your home more attractive to prospective buyers, and even increase its value. We… Read More Credit Scores Around The UK We explore the regions that have the highest and lowest average credit scores Related news: House prices likely to soar… Read More The top myths about borrowing money The top myths about borrowing money (and how to stop your money concerns) The act of borrowing capital for it… Read More Evolution Money receives Feefo Platinum Trusted Service Award 2020 Evolution Money are delighted to have won the Feefo Platinum Trusted Service award, an independent seal of excellence that recognises… Read More THINK CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER LOAN SECURED AGAINST IT. 24.12% APRC Representative Variable Maximum APRC: Maximum APRC for loans greater than £12,514.00 is 58.37%. The maximum APRC is representative of Plan 7 based on a term of 12 months and a loan amount of £12,514. Typical Example: Loan Amount: £12,514.00, Loan Term: 144 Months, Interest Rate: 19.56% PA (variable), Monthly Repayments: £245.77, Total Amount Repayable: £35,391.52. This example includes a Product fee of £1,251.40 (10% of the loan amount) and a Lending fee of £699.00. Read about our Rates and Fees. IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING, YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY. *Loan must be paid back by 70th birthday FRAUD WARNING - We have been made aware that there have been websites set up using our details to attempt to scam people for money. Evolution Money Limited will never ask for application fees, insurance fees or a fee for not using a guarantor before issuing a loan. If you have come across a website using Evolution Money details that you believe to be suspicious, please contact us. If you believe you have been a victim of fraud, please contact Action Fraud How our customers rate us We’re proud of the high standard of our customer service and believe that each of our customers should be treated as an individual. Evolution Money 96 out of 100, based on 178 reviews over the past year. 178 user reviews. Read our reviews Members of the The Finance & Leasing Association We are a member of the FLA (Finance and Leasing Association) and subscribe to its lending code. Socialise Feeling social? Check out our social pages! Tweet us on Twitter Like us on Facebook Add us on Google+ Our Address Evolution Money, 9 Portland Street, Manchester, M1 3BE Registered Company Number: 06987852 Contact by Phone General Enquiries: 0161 814 9158 Complaints: 0161 814 9165 Contact by Email General Enquiries: info@evolutionmoney.co.uk Business Referrals: introducers@evolutionmoney.co.uk Complaints: complaints@evolutionmoney.co.uk Evolution Money Limited is a licensed credit broker and service provider to Evolution Lending Limited. If your application doesn’t meet the underwriting requirements of Evolution Lending Limited we may pass your information to other lenders and brokers. Evolution Money Limited is a company registered in England & Wales, registration number 06987852 and registered at 9 Portland Street, Manchester, M1 3BE. 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