Switching banks when you have a loan...

Stev23

If I have a bank account and get a loan out, when switching banks does your loan switch to the new bank?

pcman1985

No, the loan will stay with the current lender.

YorkshireBoy

Is the loan payment a standing order or an internal 'direct transfer'? If the latter then be very careful!

PRAISETHESUN

The Current Account Switch Service (CASS) will do as the name implies - switch current accounts between banks. Any associated products such as savings accounts, credit cards or loans will not be switched as a part of this process.

I'd double check the T&Cs of your loan, as some products require you to have the lenders current account in order to get access to preferential rate products such as these. Also as above, you need to double check how your repayments are made - direct debits and standing orders are transferred as a part of the switch, but if it is some sort of internal transfer as above, then you will likely need to set that up yourself once the switch completes.