Can i transfer a secured loan in to a unsecured loan?
Answers:
You need to get a unsecured loan from someone to allow you to pay off the secured loan - remembering about early repayment fees etc on the secured loan.
Most will be reluctant to give up their security
Most finance houses would not just transfer a secured loan to an unsecured loan as this reduces security.
The only way to do it would be to borrow the same amount required to repay the secured loan on an unsecured basis and repay it. There may be penalties and legal charges if you repay it early so check you contract.
Unsecured loans sometimes have a higher rate, are repayable over a shorter term (typically 7 years) and are governed by the Consumer Credit Act so can only be for £25000 maximum.
Hope this helps. Contact me if you need any further assistance.
No a secured loan means that it is secured against your property - i.e that if you default, the Creditor can repossess your home. Unsecured debts on the other hand mean precisely that - they are not secured against your property. No Creditor of a secured debt is likely to give up that security and convert it into an unsecured debt.
Hi, The loan you took out is secured againist a asset you own, ie, Car, House, Land ect.
The way I would do it is take out a different loan and pay off your secured loan first.
The second loan should be taken out as a unsecured loan, if your not talking thousands of pounds you should then be able to take out a third loan for the amount you want.
Use different banks thou, if you can.
I hope the answer i gave you is any help, this was advice I was given.
Richard.
The answer is no. The only way to get rid of an unsecured loan is to pay it off. Nobody is going to remove the security of the loan being paid. You can however, try and get an unsecured loan for the amount of the secured loan and pay it off. Good Luck
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