Can i change loans because i found a better deal?

engineer398

Hi.
I just recieved my annual loan statement.

Back in 2008 i took out a loan for over 60 months paying 8.4% interest.
I have 4 years left on my loan.

I have found a better deal on a new loan, could i request a settlement figure on my existing loan and take out the new loan to pay it off??
Is it possbile?
Will there be any issues / problems relating payments etc?

Thanks

dougyd

Out of interest, how do you know the new rate is guaranteed?

If you've already been accepted and have paperwork ready to sign then that's fine, otherwise it may not end up cheaper.

IF you're happy then ask for a settlement figure from your current loan company, be careful about early settlement fee's though, as some loan companies apply them to cover some of the interest they won't be making from you.

Then once your new loan comes through, pay off the old one.

[Deleted User]

how much was the original loan for?and how have you managed to beat 8.4%?

BenL

I'd stick where you are unless its a 1% loan from bank of mum and dad or something.

8.4% is an excellent rate, the current loan will probably have 2 months interest penalty which will probably cost more than the possible savings on a lower standard personal loan.