Can the Bank change my loan terms?

linclass

Evening readers,
Just want to run it past you peeps, cos I'm confused....

Took out a loan with my Bankers in September, fixed rate for duration of 3 years.

Received phone call yesterday from Bank asking would I like an appt with the financial advisor. I have just under £1k on their credit card, and she seemed to suggest that it might be to my advantage to move the outstanding from the card to the loan amount. She suggested the repayments on new loans had reduced by 1% - Now, I don't understand WHY she said that, unless it's possible to CLOSE this loan and move the loan outstanding (with the £1k from the credit card) onto a NEW loan?? Thus (possibly) reducing my monthly repayments?

What do you think?

Thanks

LL

dealer_wins

I would say the loan rate has gone down slightly.

This is a standard bank sales tactic, keep the customer racking up the credit card, then every year or 2 add it to the loan "to save money".

This can go on for 30 years+ in some cases!

I would avoid the appointment, and get paying down the credit card and loan as quickly as you can.

Living without either is much cheaper, and you will have considerably more money to spend on yourself rather than adding to your bank's profits!

linclass

dealer_wins wrote: »

I would say the loan rate has gone down slightly.

This is a standard bank sales tactic, keep the customer racking up the credit card, then every year or 2 add it to the loan "to save money".

This can go on for 30 years+ in some cases!

I would avoid the appointment, and get paying down the credit card and loan as quickly as you can.

Living without either is much cheaper, and you will have considerably more money to spend on yourself rather than adding to your bank's profits!

Morning dealer, many thanks for your reply. Mmmm. It's the first time I've received a call from them of this type... I may well take your advice on this one!

LL

chesky

The so-called 'financial advisor' is really a salesperson. Their only interest is the bank's, not yours.

solentsusie

Is the 1K on your credit card at a high APR?

If so, rather than add to your loan why not look at getting a balance transfer to a 0% credit card? That way you will be able to save money on interest and pay it back at a faster rate.

Check out the balance transfer eligibility calculator and see what you could be offered. There are better ways to save your cash. Your bank aren't going to advise you to do this though, they will only advise you to take out more of their products.

Good luck.

poppasmurf_bewdley

chesky wrote: »

The so-called 'financial advisor' is really a salesperson. Their only interest is the bank's, not yours.

Reminds me of last year when I transferred £10k from a NSI bond into my current account at the Halifax. The same day as the transfer, I received a call from 'my personal banking advisor'.

I told this gentleman from the Halifax that I didn't know he even existed, and I certainly wouldn't be needing his advice.