Loan Top ups

[Unregistered]

Do all financial institutions generally offer top ups on loans (approx €3000 on a €16000). I have been repaying for 2.5 years (350 a month - never missed a payment). I got the loan to consolidate existing debts (had a guarantor as I have a bad credit history from these previous debts). I now feel back in control of my finances and want to get a small second hand car. I could afford to increase my payment on the existing loan to 500 per month, this would ensure that the term of the original loan that I want to top up would not increase. Any ideas? Oh I'm with UB by the way.

Thanks.

 

[michaelm]

I'd expect the financial institutions to give you as much rope as you want (enough to hang yourself) especially as you have a guarantor. Will your guarantor be happy to sign again for a top-up? You say you have a bad credit record and have refinanced (at around 10%) which is fine but your looking for a top-up with only half of the repayments made. Have you factored in the tax, insurance, petrol, servicing etc.? You might be better advised to live without a car for a while longer but ramp up your repayments to pay off the refinance loan over 18 months or less (should be less than €800/month to pay off over 12 months). At that point you wont just feel you are back in control of your finances you will know so. Then buy a car for cash.