Extending a loan term?

mo786uk

Hi

I have 12,000 over 3.5 years at a payment of 329

It is with Natwets and is a Grad laon at 8.4%

Does anyone know if it is possible to extend the term of a loan - say, to 5 years to lower the monthly commitment?

It allows overpayments so I can still pay extra, but would prefer the flexibility on reflection!

I'll givenatwets a call on tuesday but wodnerign is anyoen has evert tried and if it is an issue

jonesMUFCforever

I don't see why not as long as your credit score has not deteriorated.

mo786uk

the loan is 'new' - i.e i only got it about 1 month ago.

if i extended it would it lead to more interest or will they just say pay us back the interest agreed at the start but over a longer period (unlikely i guess!)

di3004

I would give them a ring like you said, good luck !

I know we have the bank holiday coming up but have you checked to see if there is a 24 hour phone line you could contact to just find out ?;)

Or maybe information online, or even on any of your documents/policy paperwork.

I have only found this link:
http://www.natwest.com/personal/borrow/loans/graduate-loan.ashx

Di.
x

CLAPTON

mo786uk wrote: »

the loan is 'new' - i.e i only got it about 1 month ago.

if i extended it would it lead to more interest or will they just say pay us back the interest agreed at the start but over a longer period (unlikely i guess!)

At best they will charge you the same interest RATE , so you will pay a lot more interest over the longer period... and be careful they may up the APR

currently you will pay about 1,818 interest
with the same rate over 5 years, you will pay about 2,740 in interest.

mo786uk

thanks for the repleis - because its a graduate loan the interest is meant to be fixed regardless and is not risk based.

it was mroe of a wodnerment of whether you are allowed to change loan terms or not.

i still plan on making bulk payments

by the way is it cheaper when makign overpayments to reduce the AMOUNT you then pay everymonth after or reduce the TERM?

beanielou

They might not be too flexible in view of the fact it is a new loan.
Have your circumstances changed since you took the loan out?

mo786uk

not really, but i was thinking they might be willing to if i said i was unsure i could afford it!

beanielou

Trouble is I think they would have expected you to make sure that you could afford it before you took it out IYSWIM.
Take it you have the paperwork & the money in your account?