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Everything you need to know about secured loan interest rates

A Guide to Secured Loan Interest Rates

Secured Loans > Our Loans > Secured Loans > A Guide to Secured Loan Interest Rates

At Evolution Money, we believe in ensuring our customers receive an open and honest service and therefore work to be as transparent as possible regarding our secured loans. We understand interest rates can be confusing at times, so have put together this handy guide to arm you with as much information as possible before you make a decision on borrowing.

What are Interest Rates?

According to the Bank of England, Interest is both the cost of borrowing and the reward for saving. In the case of secured loans, interest is the cost of receiving the loan amount. You will be expected to repay the full amount of money you have borrowed, plus interest. 

An interest rate is calculated as a percentage and charged to the total amount of money you have borrowed from a lender. To put it simply, it is what you pay for borrowing the money.

Fixed-Rate or Variable Rate

When borrowing money with a loan, there are two types of interest rates types known as fixed rate interest and variable rate interest. 

A fixed interest rate means that the agreed interest percentage that you are expected to pay back over the agreed loan term will not change. A fixed-rate of interest will not increase with the market rate, which minimises the risk of borrowing as there will be no unexpected increase in repayments. On the other hand, it also means you will not benefit from any decrease in the market rate either. 

A variable interest rate means that the secured loan lender is able to both increase and decrease the rate of interest at any point within the agreed loan term. This is normally calculated in-line with the current market rate. If the interest rate decreases, this can be beneficial to the borrower. Still, there is also the risk of having to pay more than expected if your variable interest rate increases. 

How do you measure the rate of interest?

The amount of interest you are expected to pay on borrowing options such as a secured loan can be calculated daily, monthly or annually. You may also find there are extra fees involved when applying for and receiving a loan. 

To calculate interest and the cost of borrowing, there are measures known as the Annual Percentage Rate (APR) and the Annual Percentage Rate of Charge (APRC)

When borrowing money through personal loans, hire purchase or credit cards, the APR represents the annual rate of interest that is payable and indicates how much it will cost you to borrow including any interest and lender fees. It is calculated as a percentage rate and is to be paid over the loan term. 

When working out your rate, lenders will take your personal financial situation and credit rate into account. This will then determine the interest rate they are able to offer you for the loan amount you would like to borrow. 

APRC is used to determine interest rates on mortgages and secured loans. It also combines the costs of borrowing, including charges and is useful for comparing the cost of secured loans as it allows you to see the impact of two different interest rates.

Secured Loan Interest Rates at Evolution Money

For a full breakdown of our secured loans and a representative loan example click here.

All of our Secured loan interest rates are measured by APRC with a variable interest rate. 

Interest APRC varies due to a range of factors including the amount you’d like to borrow and for how long. It can also be influenced by the value of your home and your credit score as well as other assets. 

Before applying for a secured loan with Evolution Money, please ensure you meet our criteria and are aged between 21 and 70, live in the UK and own your property. You must also be currently employed or self-employed for at least 12 months. 

By ensuring you provide us with honest information and are transparent throughout the affordability check, our qualified loan advisors will be able to make an informed decision on lending and make sure that you receive the most suitable secured loan for you. 

Please note that a secured loan means that you will be borrowing against your property and that failure to make your monthly repayments on time or in full could result in the repossession of your home.    

For any questions regarding our secured loans, interest rates and the cost of borrowing call our qualified loan advisors on 0161 814 9158. 

Our secured loans range from £5,000 to £50,000 with repayment terms up to 20 years. They can be used for a wide range of purposes from financing a car or motorbike to investing in your property or funding a well-deserved holiday. 

At Evolution Money, we look at more than just your credit score and will work with you every step of the secured loan application journey to ensure you’re making the right decision for you and are able to afford your monthly repayments. 

Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk
Representative 23.06% APRC (Variable).

For a typical loan of £30,000.00 over 120 months with a variable interest rate of 19.56% per annum, your monthly repayments would be £598.34.

Including a Product Fee of £2,400.00 (8% of the loan amount) and a Lending Fee of £807.00, the total amount repayable is £71,800.20.

Annual Interest Rates ranging from 11.88% to 29.38% (variable). Maximum 50.00% APRC. The loan must be paid back by your 70th birthday. Read more.



Think carefully before securing debts against your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. 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.
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