What does this second charge mortgage calculator show?
This calculator provides an illustrative repayment estimate from the figures you enter. It is not a quote, a lending decision or personal advice, and it does not assess eligibility. Actual payments, rates, fees and total cost depend on the product and an assessment by the relevant lender.
Illustrative result
Figures are illustrative only. They are not a quote, APRC, eligibility result or lending decision.
Enter figures and submit to see an illustrative monthly repayment. Without JavaScript, the static worked example on this page still shows how the estimate is produced.
The Second Mortgage Company is a trading style of COLOFS.co.uk LTD, is an Introducer Appointed Representative (FCA number 982062) of Loans Warehouse whose office address is 1a, Blackmoor Lane, Watford WD18 8YW, who provides mortgage products and services.
ImportantAs a mortgage is secured against your home, your home could be repossessed if you do not keep up the mortgage repayments. Think carefully before securing other debts against your home.
The repayment tool above accepts a loan amount, a term, an illustrative annual interest rate, a repayment type and optional fees. It deliberately does not ask for a property value, an existing mortgage balance or a loan-to-value figure. For illustrative equity and example combined LTV headroom, use the equity calculator further down this page.
How is the illustrative repayment calculated?
For capital and interest repayment, the calculator uses a standard amortisation formula that spreads the loan amount and interest evenly across the chosen term, converting the annual rate to a monthly rate first. For interest only, the monthly figure reflects interest on the full balance, with the capital remaining outstanding throughout.
In plain terms, the monthly rate is the annual illustrative rate divided by twelve and expressed as a decimal. The number of payments is the term in years multiplied by twelve. For capital and interest, the standard mortgage amortisation formula then spreads the principal and interest across those payments so that the balance reaches zero at the end of the term. For interest only, the monthly payment is simply the principal multiplied by the monthly rate, and the capital itself is never reduced by the calculator's illustrative figures. All figures are rounded to the nearest penny for display.
What can change the actual cost of a second charge mortgage?
The actual cost of a real product depends on the rate offered, any fees charged, the chosen repayment method, the agreed term, and the outcome of a lender's assessment. A variable rate can also change during the term, altering payments in a way this calculator's single illustrative rate cannot show.
See second charge mortgage rates for more on pricing, and risks of secured borrowing for what a rate change or missed payment can mean in practice.
Can this calculator tell you how much you can borrow?
No. This tool estimates a monthly repayment from figures you choose; it does not assess affordability, available equity, or any lender's own criteria. How much someone might actually be able to borrow depends on a full assessment by the relevant provider, not on a payment estimate produced here.
For general context on borrowing amounts, see how much you may be able to borrow and second charge mortgage eligibility.
How much equity might support additional borrowing?
The equity calculator uses the property value and outstanding secured borrowing you enter to illustrate remaining equity, current loan-to-value and extra headroom at example combined LTV thresholds of 65%, 75% and 85%. You can then explore an example borrowing amount and an illustrative repayment. Those percentages are not a lender maximum. Affordability, credit and an independent valuation can all change the amount actually available.
YOUR BORROWING EXPLORER
Illustrative figures. No credit search.Step 1 of 3
First, a little about your home.
Illustrations use 65%, 75% and 85% combined loan-to-value, not lender limits. Affordability, credit history and a lender’s valuation also affect what may be available.
These bands are illustration thresholds only. They are not published as Loans Warehouse or lender maxima. For the longer explanation, see how much you may be able to borrow.
Static example and limitations
The figures below are a fully labelled hypothetical example. They are not a representative offer, a typical case or a quote. The 6% rate is an arbitrary illustration, not a quoted, available or recommended rate.
Swipe to see more columns
The monthly rate used is 0.5% (6% divided by twelve). The standard amortisation formula then spreads the £25,000 and the illustrative interest across 120 payments so the balance reaches zero at the end of the term. On an interest-only basis, the same amount, term and arbitrary 6% rate would produce a monthly interest payment of £125.00, and the £25,000 capital would remain outstanding.
Change any of the figures in the calculator to see how the illustrative result moves.
The repayment calculator excludes valuation, legal and arrangement fees unless entered manually, does not model a changing rate over time, does not include insurance, and does not reflect any specific lender's criteria or tax position. The equity calculator uses 65%, 75% and 85% only as example combined LTV thresholds, not as published maxima.
What happens to the figures you enter
Calculator inputs stay on this page while you use the tools. They are not added to the page address and are not treated as a quote or application on their own. See the privacy information for how data is handled if you start an enquiry.
Start an enquiry once you have an illustrative figure in mind. A calculator result is not a quote or an indication that finance will be offered.
Frequently asked questions
How accurate is a second charge mortgage calculator?
This calculator is only as accurate as the assumptions entered into it. It shows an illustrative result based on a chosen amount, term, rate and repayment type, and cannot reflect the actual rate or terms a lender would offer. Treat any figure shown as a starting point for a conversation, not a forecast.
Does the calculator include fees?
Fees are an optional input, and you can choose whether to add them to the loan amount or keep them separate from the borrowing itself. The calculator does not automatically assume any specific fee, so entering a realistic figure, or leaving it blank, changes the illustrative total shown.
Can I calculate interest-only payments?
Yes, the calculator offers an interest-only option alongside capital and interest repayment. With interest-only, the monthly figure covers interest only, and the capital borrowed remains outstanding at the end of the term, which is an important difference to understand before comparing the two repayment types.
Will the calculator show if I am eligible?
No. This tool estimates a repayment figure only; it does not assess income, credit history, property value or any other eligibility factor. Only a lender's own assessment, carried out through Loans Warehouse, can determine whether a specific applicant is eligible for a specific product.
Do variable rates change the result?
The calculator uses the single illustrative rate entered and does not model future rate changes automatically. If a real product has a variable rate, actual payments could rise or fall over time. Re-running the calculator with a different rate is one way to see how a change might affect the figures.
How does the equity calculator work?
The equity calculator uses the property value and outstanding secured borrowing you enter. It illustrates remaining equity, current loan-to-value and extra headroom at example combined LTV thresholds of 65%, 75% and 85%, then lets you explore an example repayment. Those percentages are not a lender maximum. Affordability, credit and valuation can still change the amount available.