Refinancing a loan: we refer you on

When the annual percentage rate of the new loan is lower and the remaining term does not become longer. Work it out from today: what will you still pay if you continue and what will you pay if you refinance, including the early repayment charge and any arrangement fees. Only then are you comparing like with like.

No. Our AFM licence covers general insurance only. Broking on credit, including refinancing, falls under a different licence category. We refer you to providers registered for it. They calculate the benefit, assess what you can afford and arrange the repayment of the existing loan.

With revolving credit at a variable rate, usually nothing. With a personal loan at a fixed rate the provider may charge a statutorily capped fee for the interest lost, which falls as the remaining term shortens. Always ask for a written redemption statement with the exact amount and the date up to which it is valid.

Only if the overall picture becomes cheaper or the payments are otherwise unsustainable. Consolidation gives a clear overview, but often stretches short debts to a long term. Assess each credit separately on the outstanding balance, the remaining term and the cost percentage, and keep the new term as short as you can afford.

The old registration is ended as soon as the credit is repaid and the new loan is registered. An earlier arrears notification does not disappear with it: that remains visible for years after repayment. After refinancing, check that your old credit has actually been reported as ended.