Changing your loan provider doesn’t have to be difficult and can really improve your financial situation. Whether you have a logbook loan, mortgage, or any other type of personal loan, exploring options beyond your current provider could potentially save you money.
Assessing your current loan
Start by carefully evaluating your current loan. Write down the terms, interest rate, and associated fees. This will provide a baseline for comparison when looking at other loan providers.
Searching for alternative lenders
To review potential loan providers, start by searching online and compare interest rates, loan terms, and even customer service reviews, consider asking friends and family for recommendations. Look for lenders that fit your current financial goals.
Preparation
Before approaching lenders, make sure you have all the necessary documents such as proof of income, proof of address, identification, and any other relevant information. Having these documents ready will help process the loan application quickly.
Understanding the loan
Once you have a shortlist of potential loan providers, request a ‘soft’ quote from them. (make sure the lender does not do a hard search at this stage). Look at all offers carefully, compare interest rates and APR, repayment terms, fees, and any other costs.
Look under the hood at their terms and conditions, consider fees and/or penalties for early repayment, late payments, or anything else.
Consider the total cost of the loan over the full term, and make sure that you are able to meet the loan repayments comfortably.
Completing the switch
Most loan providers will take over the switch for you and notify your current lender. If not, notify your current lender of your intention to refinance and switch providers, you might even get a better offer from your current loan provider!
Once the loan agreement has been finalised, make sure to update any payment arrangements or direct debits, from your old lender to your new loan provider.
Good luck!
