Getting new loan to pay off old one

D

Dee101

Registered User
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Hi guys i have had awful trouble with my bank (who shall remain nameless for now). They are the most incompetant shower I have ever came across!.

So, I have a loan out at the moment with my bank and they charged me a very high interest rate. There are about 4 and a half years left on the 5 year term - so I only took it out a couple of months ago.
I was wondering, if I get a loan from another bank (at a cheaper rate,all the other banks are much cheaper) can I pay off my loan with my current bank and will they charge me the interest for the next 4 and a half years?

Sorry I hope I'm making sense.

Thanks for your help
 
If your existing loan is a variable rate loan then you can clear it without penalty with other funds. Usually with a fixed rate loan there will be a break clause such that there will be a financial penalty for clearing the loan early, but it's unlikely to be anything like 4.5 years interest! If it is a fixed rate loan you can ring the bank and get a settlement figure to see exactly how you're fixed.
 
Thanks a mill for your reply. I am sure I am on a fixed rate but I will have to double check later....I won't go into the detail but I am worried sick over this loan. They really messed me around. I am thinking of going to another bank to get another loan and also open a new account with them and close the one I have. I am just sick of the incompetence and lack of customer service with the bank I am dealing with and you seem to have no comeback with them.(Rant over sorry!)

I will start shopping around for a new loan and apply then.

I heard Bank of Ireland are offering the best rates for loans circa €10k or does anyone know if theres anyone better at the moment? (I'm sure there are loads and loads of threads on this but I am in work at the moment and haven't time to read them all, want to get this sorted asap as its on my mind)

Really appreciate the help. Thank you
 
tesco do a term loan at 6.9%, fixed but with no exit penalties, which for 10k is €196.42 over 60 months which looks fairly good to me. Most if not all of the lenders have online loan repayment calculators so you can check them out when you get a chance.
 
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