swap one loan for another?

rcotugno11

I took a loan out with my bank last September for £8000. We are paying it back over 5 years and will end up paying £12000 back in total.


What are my chances of finding a lower interest loan that I can pay off my current one with?


Is this a good idea?


We have not missed any payments of our loan - but are now really regretting the decision to get it in the first place.


Thank you in advance for any help given

imoneyop

rcotugno11 wrote: »

I took a loan out with my bank last September for £8000. We are paying it back over 5 years and will end up paying £12000 back in total.

What are my chances of finding a lower interest loan that I can pay off my current one with?

Is this a good idea?

We have not missed any payments of our loan - but are now really regretting the decision to get it in the first place.

Thank you in advance for any help given

You couldn't get a lower rate 6 months ago, so what makes you think that you are a more attractive borrower to a lender now?

You will also need to consider that you will now be being considered as having £8k of credit (ignoring anything else you might have) and are looking for an additional £8k - that makes £16k just in these 2 loans alone. You saying that the loan will be used to pay off the existing one will not hold much water with lenders as they will have heard it many times before and then seen the borrower not bother repaying and just waste the cash and end up in financial difficulty as they can't afford both loans.