Adding money to a loan

RachBiker

I already have a loan of approx £5000 with 2 years left. I need to borrow another £1000 for various reasons, but don't particularly want to take out a second loan alongside the first.

Is it possible to 'extend' a current loan, extending the length of time of the loan (perhaps reducing monthly payments?) or would it be better to take out a second loan, pay off the first and continue with that instead? Or is the second loan alongside the first be the most logical?

Very confused!

Any advice appreciated :-)

DCFC79

RachBiker wrote: »

I already have a loan of approx £5000 with 2 years left. I need to borrow another £1000 for various reasons, but don't particularly want to take out a second loan alongside the first.

Is it possible to 'extend' a current loan, extending the length of time of the loan (perhaps reducing monthly payments?) or would it be better to take out a second loan, pay off the first and continue with that instead? Or is the second loan alongside the first be the most logical?

Very confused!

Any advice appreciated :-)

Why not ask the current lender if you can add some extra money.

A second for how much ? A thousand ? You would have to ask the bank for for that, you wont get a loan from lenders eg Tesco as the min is £7500 or the cheapest rates start at £7500.

All depends on your circumstances though whether you take out a second to pay off the first.

TBagpuss

You'd need to ask your bank about increasing the amount, but I think they are more likely to offer a second loan, or suggest that you consolidate. If you have the original paperwork for the loan you've got, read it.

Depending on the interest rates available, you may find that taking out a new loan to pay the old one is a better plan, financially

bengalknights

If you ask for a topup loan they should offer it as part of your existing loan with new terms though