Disclaimer
MFS are a bridging loan and buy-to-let mortgage provider, not financial advisors. Therefore, Investors are encouraged to seek professional advice.
The information in this content is correct at time of writing.
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 MFS.
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 MFS, 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 MFS 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.
Secure loan calculator
What other tools and resources does MFS provide?
Providing our free-to-use secure loan calculator isn’t the only way in which we support our brokers and borrowers. We have many comprehensive guides available on our website which cover everything from bridging finance through to the holiday let market.
What’s more, we have blogs, reports, and independent research available on our website which can help investors keep on top of what’s going on in the market. Not to mention, our Let’s Talk Property podcast gathers the latest insight from experts spread across the property spectrum.
And of course, all our underwriters are there to support our borrowers from day one of their enquiry. As we underwrite from the get-go, our teams are able to guide investors through our lending process, and there is always someone there at the end of phone to answer questions.
We don’t want to just be a lender and nothing else. We want to be a force for good in the market, raising the bar for what lenders can do for their borrowers. By educating and assisting brokers and their clients in any way we can, we hope to build better outcomes for everyone.
[1] https://www.mirror.co.uk/money/construction-costs-rise-red-sea-32059333
