HSBC Loan..

[RhinoGirl]

Hi, just after a bit of advice and hopefully some positive experiences.

A few years ago, me and DH had a loan from our banks. All was well, never missed a payment on either. Last year I was on mat leave and few big expenses came up and we extended mine.
We have recently put our DD in childcare, which is just about crippling us every month, along with other debts (CC, phone bills etc). We’ve managed to reduce the phone bills, but the two loan payments are the biggest outgoing.
There’s no point in touching my husbands, it’s paid off in 7 months (yay!).
I’m considering asking HSBC to lower the payments and pay it off for an extra year...
Are they likely to help if I do an income expenditure? Or should I not bother and grin and bear it for a while?
Any advice would be most welcome.

Anyone?

Surely it will just be a new loan application? We’ve done this a few times (usually adding a bit more on for something or other) and it’s no problem.

Yes they will want to go through and income and expenditure as you are asking for forbearance. They have to consider this.
If you need help and advice on budgeting then CAB or Money Advice Service who can help with you dept in general.

It is often best to be forward with this rather than leave it until you can't pay.

Yes a bank would treat this as a new loan with a debt consolidation element. So you would need to evidence the new loan being affordable. However loan rates are low at the moment so you may find the APR on a new loan is cheaper when comparing the two. This will then help towards the interest of extending the term when you take a new loan.

Thank you for your advice. I didn’t realise it would be a new loan application, which is something I am looking to avoid as trying to build a good credit rating. I will have to see what they say, as ideally I would like to avoid a ‘repayment holiday’, pay off the remaining balance with lower repayments for slightly longer.
Does anyone know if HSBC are helpful and considerate? Read some awful stories while searching before posting!

It will down to a credit search. They will do some initial checks to make sure they can go through an application and then it's just down to what comes back on the search. The bank staff have no authority to override if you fail a credit check. I would go to a branch rather than do it on the phone tho

Maybe this isn’t the best option for me then, as I don’t really want to apply for a new loan and possibly be rejected. Just slightly alter the repayments, I may have to grin and bear it for a while as we’ve made cutbacks almost everywhere else, it’s just this payment that’s taking it’s toll

It wouldn't be a new loan (although that is an option) If the borrower is in financial difficulty with affordability then they must consider forbearance and routes to resolve.
Lenders are obliged to consider possible changes to repayment structure where there is difficulty.
Call them up and saying you are in financial difficulty and would like to talk to someone about it. Be honest and full, cause you spent the money down the pub is not reasonable, because you have had a child and unexpected costs is.
A change is likely to be reported on your credit file so consider fully before agreeing to anything.