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Paying off Part of my Loan

Hi I hope someone can point me in the right direction.

I currently have a loan of £6000 left to pay off, I am doing so at £200 a month.

Now I have £3000 in savings which I would like to use to pay off some of the loan and reduce my payments to a more managable sum of £100 a month.

Now I have called Llyods who the loan is with and they said I would have to close the current loan and take out a new one with the new payment figure. This worries me slight that I will be paying them yet more interest is this right?

Can someone advise me the best way to go about this?

thanks alot

Chris

Reply to
Chris
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Sorry to add to this the current APR is 5.9% which they said I would be unlikely to get with refinancing

Cheers

Chris wrote:

Reply to
Chris

What about set up charges, redemption charges etc?

Reply to
Troy Steadman

Reply to
Chris

At 13:01:15 on 31/07/2006, Chris delighted uk.finance by announcing:

Ignoring any charges, it's not worth doing this unless you get the same APR or lower; charges will further reduce the APR you need to get. Otherwise, you're better off leaving the £3k in savings; if you need the extra £100 then withdraw that much out of the savings account every month. If you don't need the extra £100 then stick the whole lot in an ISA (assuming you haven't exhausted this option this year).

Reply to
Alex

thanks Alex thats exactly what a friend just said to me, seems the best option I don't want to give the bank anymore of my hard earned!

Cheers

Alex wrote:

Reply to
Chris

You ask on here but you won't ask Lloyds?

Reply to
Peter Saxton

well I have allready asked Lloyds and they have said I will need to refinance, I have come on here for advice from people not trying to sell me anything and I have the answer I needed.

thanks for the help

Chris Peter Saxt>

Reply to
Chris

You ask what the charges will be and Lloyds are the ones to tell you that.

Reply to
Peter Saxton

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