Refinancing...

andyman2303

Hi All,

I took out a loan in July with Halifax in order to buy myself a much needed new car - my current one on it's last legs and after my older sister passed her driving test, we would have to share it (really wouldn't work).

At the time I had only been in my current job for 2 1/2 months, and my credit rating was a tad delicate. Now however I have been in my job for 7 months, been paying off my loan, using my credit card and have been completely out of my overdraft.

For people in the know, would it be worth trying to refinance; I think my current rate is about 16%, but obviously would prefer something a bit cheaper. Unfortunately I'm not completely 'in the know' when it comes to stuff like this as it's my first experience with loans and such-like.

Any help is very welcome - cheers!

[Deleted User]

the only thing i would say is that getting personal loans has become much harder in recent months,how much are you looking to borrow?and remember any lender will take into account that you already have this loan,not that you will pay it off,as they cant force you to do so.

andyman2303

Sorry I forgot to say!

I originally borrowed £8000 over 5 years. I've paid off £600. However when I took the loan, the gentleman said that I could refinance it, rather than taking out a completely new loan, paying off the old one, and then starting fresh with the new 1.

I'm not sure if 'refinancing' effectively means that, and so I'd take out say £750(to cover the 'early repayment' fees (2 months interest I was told); but instead of it being at 16%, it could be say 12%, and so considerably less over the 5 years.