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Loan to clear a loan?

erasmus666
erasmus666 Posts: 14 Forumite
Ninth Anniversary First Post Combo Breaker
Last year I took out a 7-year secured loan last year at an APR of 15.6% to pay off an ex-wife. Originally I was going to clear the loan when I sold my house. Unfortunately, for various reasons this sale is no longer going ahead and I have to continue paying the nearly £300 per month repayments for the foreseeable future. The question is this: As I have a CCJ still on my credit record for at least another 2 years is it possible in any way to take out another loan to pay off this one, ideally, at a lower APR which would presumably result in lower repayments (this and my mortgage take up nearly half of my nett salary each month)? My concern is the effect on my ability to pay my bills if interest rates increase after the election in May. Comments would be appreciated.

Comments

  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    With a CCJ on your credit file then it's unlikely you'll find a loan with a better rate than 15.6%. You could always try the MSE Loans Eligibility Checker which will do a soft search. That would give you an indication of your chances of getting another loan.
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