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Refinancing Lloyds TSB Loans

Hey guys, can anyone help me on this?

I've been offered this as an option by Lloyds, but I'm not 100% sure what it means. Someone told me it will get your payments reduced each month?

Could somebody help me, please? Thanks.

Lazy Jane x
People demand freedom of speech as a compensation for the freedom of thought which they seldom use

DFW 451 - proud to be dealing with my debts :beer:

Comments

  • It means that they close your original loan (and add charges for doing this) then recalculate the interest rate, the loan amount and the monthly payments. Usually they offer a lower monthly payment but neglect to mention the increased interest rate and loan term, and the fact that they will charge you a penalty for ending th old loan, even though they are the ones recommending you do so.

    They keep sending me letters asking me if I want to re-finance my loan and borrow more, but it looks like a con to me, quite frankly.
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