Change Bank Loan for Interest Rate - is this a no brainer?

[Twix1990]

So myself and DH are with different bank providers - Natwest and Lloyds.

In December, we needed to take out a bank loan for £12,000 over 5 years, interest rate 9.6%. The payments are around £250 a month.

This morning, I plugged the figures into my Lloyds Account, curious what their interest rate would be (as in the past they have been higher than Natwest) and was surprised to see they would lend £11,000 (What is now left of the loan) over 5 years at 6.7%. We would most likely take the new loan out at 4 years and overpay by say £200 a month to try and get it gone sooner.

Am I being stupid, or is this a no brainer to take out the Lloyds loan at a lower interest rate and pay off the Natwest Loan, in order to pay less interest overall?

For information the Natwest Loan to pay off fully is £11,200.00.

if you have already accounted for an early redemption fee in your numbers then I would say makes sense to move your loan. Just be wary of another credit check on your file.

@Lifeisapeach good point thank you.

Yes I think it makes sense too I just wanted to check I wasn't missing anything obvious! :)