Change to term of loan help please....

atypicalblonde

Dear All

I just have a quick question in relation to our loan... it is with the Lloyds tsb, and is over 60 months. We can afford to make higher payments each month that they are currently taking from us, so we called up to try and arrange to increase monthly payments, but were told after a brief wait that this had been 'declined' for us.

Please could someone explain how they decide whether or not to allow you to increase the amount you pay per month -is it on a credit scoring basis?

Please dont think I'm daft... just not sure about this. many thanks in advance x:rolleyes:

jonesMUFCforever

You can't change your repayments as they are fixed just as the bank can't raise its rates on the loan.
However you can make overpayments but these must be done in person at a branch or sent by cheque to the Personal Loan centre at Peterlee.
If it is inconvienient to go to the bank to make the overpayments why not put them aside in a savings account until you can make a real dent in the loan balance.