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Loan Calculator

There are often a lot of emphases put on the banks or building societies to practice responsible lending. But a matter that must also be addressed is the one of the financial world insuring that clients practice responsible borrowing. A recent conference on the financial system of the 21st century called for financial products, such as loans and mortgages, to be “bought” rather than sold. A good starting point for putting this in to practice is that you as the borrower know the amount you can afford to borrow and what you can realistically afford to pay each month depending on the different interest rates. It should not be that you are told what you can borrow; you should be able to take the responsibility for making sure that any loan you take out can be easily maintained.

Before referring to a loan calculator

As part of your role as a responsible borrower, find out what you can afford in monthly loan repayments by performing a full financial appraisal on yourself. Subtract from your monthly income the obligatory expenses that you are committed to, and then give yourself 10% leeway on that in case of emergencies (it’s surprising how often these occur). The figure that you are left with is the maximum monthly loan repayments you can afford. You need to know how much you want to borrow and over how long a period you are prepared to pay it back. Then you can use a loan calculator and get the most out of it.

Secured loan rate tables.

Please note that the above stated APR's are a typical example, and should only be used as a guideline. Loans can be from £3,000 to £100,000. Rates vary from 6.9% APR.

Without Insurance...