Switching account

dammit5

I want to switch my account but I have a loan account with my existing bank. If I switch will they cancel the loan agreement and force me to pay the remainder (3K,and 18 months to run) or will I be able to make the payments on the loan via Direct Debit from the new account?

mwarby

It's likely they will make arrangements for the repayments to continue. It may depend on the terms and conditions of the loan(eg if it was a special rate for current account holders only). I expect the only way to know for sure is to ask the bank, although that maybe tricky with the current situation (less staff, more contacts due to financial difficulty and mortgage holidays)

dammit5

Thanks for your reply. Their useless 'customer service' is the main reason for switching,so I've no confidence in them at all!

dammit5

I checked the agreement and it makes no mention of this potential situation-only early settlement.

colsten

There's nothing to stop you from setting up a current account with another bank, without having to switch. You can give your new bank details to whoever pays your income, and you can move any SOs and DDs easily yourself.

dammit5

Thanks for your reply. Yes I've considered that and might well go down that road.It's just easier to do the full switch!