Consolidating loans

Takeover

I have two loans outstanding with Lloyds loan and want to consolidate them into one payment per month - this will mean a reduction in my repayments and possibly a better interest rate.

Will this mean the bank will do a credit check on me? Or because I already have the credit outstanding with them, will it be automatically approved?

Rafter

The interest rate you get will depend on your overall credit rating so I guess Lloyds might do some sort of check.

Make sure you aren't just spreading the loan over a longer period to reduce your payments unless you have no option.

Maybe someone at Lloyds can confirm whether a further check will be done.

R.

glasgowchick

When you apply for the larger loan LTSB will run an external search on your credit history using experian. This is to check your identity and address, the search may include other household members so be sure to have all in good condition. How much are you thinking the larger loan will be?? and max term will be 84 months, Hope this help,

Takeover

I have two loans with them - one was originally £7,000 and the other was £2,000. I am paying out two payments each month of £250 and £220 and was hoping to combine the two settlement figures in a joint loan of £6,000 over three years, with a joint repayment of just £270 a month.

However, I am likely to fail a credit cheque due to recently moving house (also my partner has a default) - would it be better to speak to my bank manager directly and see if he can help me consolidate them?

glasgowchick

Hiya, You won't fail the credit cheque if you have moved house as long as you have informed the bank of the move and your statements are being sent to your new address. Speaking to the bank manager won't make much difference as he uses the same system as the call centres and internet banking.

In addition make sure you register for LTSB on-line banking as the on-line loans offer the cheapest rates. Depending on your account rates are on from 6.4% at the moment.

In addition you will have to pay an early settlement fee of 58 calendar day interest on both loans capped at £250.

If you have Loan Protection you may be eligible for a rebate of part of the premium that you have paid as long as you have not made a claim on the policy minus a £45.00 admin fee.

Hopes this helps and I have all of the information on good authority,

The loan doesn't need to be taken in joint names. When you complete your application you only need to give details of the bills you pay, so deduct your partners contribution for the other bills,

good luck , Any more LTSB questions fire away or P.M me,

Glasgowchicka

Takeover

Oh, right, I was under the impression that speaking directly with the manager would enable me to clarify the situation and explain that my partner's income is set to rise in September as she has secured a job.

We can afford the repayments on the two loans in the long term easily- just that it makes sense to combine the two in a lower loan amount with a lower apr, until my partner returns to full-time work.

I did phone LloydsTSB online but the person making the application added in an additonal £5,000 when I really only wanted to combine my two loans not get any extra but they simply ignored my requests that I didn't want to add in my lloyds plat debt- it was not accepted.

When I asked them to try without the extra £5,000 - they said it wasn't possible because the system had locked them out. Plus they could not tell me why I had been refused (I suspect because I am not yet on the electoral roll).