paying off a secured loan with a unsecured loan

darrenchittock

I took out a secured loan of £30k about 3yrs ago to consolidate some debts. After reading alot about secured loans i was thinking about how to get rid of the secured loan by taking out a unsecured loan. I owe £25k. One idea was borrowing £20k and using a excellent credit card rate for the other £5k. Any advice on this option or any other ideas very welcome. In need of help on this.

[Deleted User]

what rate is the secured loan at?unless it was sub-prime you will be very lucky to get anywhere near it atm,in fact you will be lucky to get a loan for that amount whilst you have a £25 loan outstanding

immoral_angeluk

You're less likely to be able to get a large unsecured loan like that unless you have a very high income. The creditors will credit check you on the basis of you already having 25k but wanting an additional 20k (ie they wouldn't think about what the loan is used for), so 45k (plus any additional debts) would require a massive income for them to feel you aren't a risk to lend to.
The idea is good in theory but in practice I'd imagine it'd be almost impossible to be accepted. You have to bare in mind secured loans will have lower interest rates than unsecured too.