Swapping secured to unsecured

adrian123456789

Hi there, just wondering if anybody knows the rules for swapping a secured loan (on house) to an unsecured loan.....total is under the normal £25000?? for unsecured, with Barclays?? Thanks

david39

I don't think there are any rules, as such.

It's just a question of finding someone to lend you the required sum and then paying off the mortgage balance to your original lender.

Make sure you understand the terms of the mortgage with regard to any fees involved in early repayment.

adrian123456789

thanks very much

molerat

I am assuming this is a secured loan and not a mortgage but still as above.

You will not be able to simply swap, why would they, they have the property if you default. You need to get an unsecured loan to pay off the secured one and I doubt they would do it in house.

Tixy

If you can find a lender willing to offer you an unsecured loan for the amount you want then its really just a case of applying and using the money to pay off your secured debt. Check you know what the settlement figure is for your secured debt and what early repayments fees it includes.

The APR will likely be much higher than a secured debt (with a high street bank) and will be assessed on the usual afforability calculators taking into account your salary and existing commitments etc.

And of course because the loan term is likely to be much shorter the payments will likely be much higher than for your secured loan.