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Possible to renegotiate terms of existing loan?

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  • 24-01-2010 9:25pm
    #1
    Jessibelle
    Registered Users Posts: 1,761 ✭✭✭


    Hi All,
    I'm enquiring on behalf of a family member here, so please bear with me if more details are needed.
    A family memmber recently (Oct 2009) took out a loan for 15k for 5 years with the BOI. They have paid back €6500 through over payment, and pay back just under €350 a month repayments. They have payment protection on the loan, but as they were made redundant 2 weeks after taking on the loan, apperently it will not cover repayments. So, the questions they have are:
    1) is it possible to cancel the Payment protection since it's not actually much use?
    2) if they approach the bank about reducing the payments by about 100 euro a month, will they be considered or told where to go?

    They're not having problems meeting the repayments yet, but would like to free up a little extra money in the event it's needed for something unexpected.
    Thanks for any advice.


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    #2
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,920 Admin ✭✭✭✭✭Toots


    As far as I know, it is possible to cancel the payment protection policy at any time, and receive a refund of the premium paid, minus the amount due for the period of cover. If the loan is overpaid by about €6500, I can't imagine the bank will have a problem with reducing the payments, seeing as the loan is already ahead of itself.


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