# Refinance loan vs Overpaying?



## Sharpyyyyy (Sep 26, 2015)

Hi, I'm after a bit of advice.

I currently have a sainsburys loan with 44 months remaining and I pay roughly £271.

I've been looking around at other loans and I can drop it to 36 months for £50 extra or I could just repay my sainsburys loan monthly ranging from £50-£200.

What would you guys do in this situation?


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## Philb1965 (Jun 29, 2010)

current loan 11924 to pay
36 month loan 11556 to pay

So if you can afford it and want to save the difference then go for the 36 month.

I don’t understand the 50-200 bit, is this overpaying? If that is the case the apr comes into play.


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## Andyblue (Jun 20, 2017)

Sharpyyyyy said:


> Hi, I'm after a bit of advice.
> 
> I currently have a sainsburys loan with 44 months remaining and I pay roughly £271.
> 
> ...


I presume you mean by repaying your loan from £50-200, this means you taking another loan out for a longer period ???

I'd ask Sainsbury's if you can overpay each month and is there any charge for repaying early - if not and providing you can't get another loan considerably cheaper, then I'd just increase your monthly payments d pay it off sooner :thumb:


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## garage_dweller (Apr 10, 2018)

Depends on interest rate really but would make sense to take the 36 month loan and overpay that. 

If you can afford to overpay up to £200 a month take the loan over a shorter period. 


Sent from my iPhone using Tapatalk


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## c87reed (Dec 9, 2015)

If you are looking at an additional loan, even to clear the balance on the first, then you may not necessarily get the best or quoted APR. It all depends on the rates of interest for each option as to whether it would be a worthwhile move.

I would make overpayments on the current loan if you just wish to shorten it, unless of course a new loan would be cheaper in terms of the interest paid.


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## Darlofan (Nov 24, 2010)

Overpay on the one you have. They'll offer option to drop repayments each month or leave repayments the same so it finishes earlier. Just leave the same and keep overpaying.


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## JoeyJoeJo (Jan 3, 2014)

I would be overpaying the current if that's available.
You are obvisouly managing the payments but that would give you more flexibilty in the overpayments rather than tying you to a higher payment. You can overpay more in the good months but are not tied to it when you may need to hold on to the overpaymnet lke holidays or christmas or unexpected expenditure.
That would also keep another loan application off my credit file, settling one by tking another may not be viewed in the best light by future lenders.


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