What to do to change term of loans ?

D

dan

Guest
Hi,

I am half way through repaying a personal loan over 3 years. Now I am gettung married at the beginning of next year, and I would like to reduce my monthly repayments from around 300 Euro.

I want to ask the bank if it is possible to stretch the remaining outstanding amount over 48 months.

Anything I have to consider beofre doing that? Will the bank raise objections? I don`t need or want any additional money, I just wanna get my monthly outgoings down.

Any tips appraciated.

THX,
dan
 
First of all, be aware that by extended the duration, you are increasing the total amount of interest you pay to the bank over the lifetime of the loan - so this decision will cost you money in the long run.

Is your current loan a fixed rate or variable rate? What interest rate are you paying?
 
I am aware that I will have to pay more interests overall.
That`s not really a big issue.

I have a variable loan with currently 8.9 %.
 
Just check as well that any changes to payment recorded are recorded on your credit file (ICB). This could affect future loans. I think I remember reading that somewhere but I could be wrong. I can't find any reference to it anywhere either but when I was applying for a loan I read it somewhere.

Managed to find this:

[broken link removed]

In profile codes t=terms revised, this might not look good on credit file. I'm not sure how or when the bank record this on you file. (maybe I'm just being paranoid!)
 
Might be a good opportunity to renegotiate your interest rate - or switch your loan to a more competitive lender or possibly your local credit union (depending on their interest charges)
 
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