Review the agreement you already have
Check the payment amount, APR, remaining term, settlement figure and total remaining payments. These details make it easier to compare any alternative on a like-for-like basis.
Ask the right comparison questions
Would the new term be longer? What would the total amount repayable be? Are there fees? Is the vehicle eligible? What happens if you settle early? These questions help keep a lower headline payment in context.
Keep the wider budget in view
If you are worried about affordability, speak to the current lender early and consider independent money guidance. Do not take on new borrowing simply because a payment looks smaller without understanding the total commitment.
Questions to consider
- Why should I keep evidence of the figures?
- It helps you make a clear comparison. Keep the dates, payment schedules and terms so you can compare current and possible new commitments.
- What is an affordability assessment?
- It is a process used to consider whether repayments may be manageable. The exact method and information requested can depend on the provider and product.