New loan+old loan

[stripey]

Hi,

I am considering taking out a new loan. I have an older loan with bank, probably another year left to pay on that. Bank has indicated they can only loan by merging loans => I end up paying interest again on the old loan which I had presumed I had payed off already. Do all banks merge their loans? If not which one's do not require this? Also, has anyone negotiated with banks on this i.e. I am not interested in paying interest on old loan again at new APR over 3 years.

Thanks.

 

[demoivre]

You mean you will pay interest on the balance of the old loan as it's merged with the new one.

 

[moneyhoney]

Hi,

I end up paying interest again on the old loan which I had presumed I had payed off already.
Thanks.

You won't acutally ends up paying interest on a loan you've already paid off - as there's a year to go on the loan.

But it is often the case that where you want to take out another loan with the same bank, they want you to consolidate your loans......

I understand that you don't want to stretch the current loan out over 3 years when there's only a year left. You could apply to another bank to get a loan from them (and not consolidate this one). However, getting loans at the moment is tougher than it was & having an existing loan already may go against you.