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Video: Debt restructuring: how does it work?
Do you have a loan whose interest rate still stems from a high-interest phase? Have you ever thought of replacing it with another loan that offers more favorable terms?
This process is called debt restructuring and it can be very profitable. Since LBS building society contracts offer extremely favorable conditions, it usually makes sense to reschedule a high-interest loan on a building society loan. Ideally, you already have a saved contract. Otherwise, pre-financing can also be worthwhile.
The right time
You can easily cancel any loan after ten years - or earlier if the fixed interest rate expires. However, if you want to cancel beforehand, you often have to pay a prepayment penalty. Depending on how large the interest savings from the new loan are, it can still be worthwhile. Make sure you speak to your LBS advisor: he will calculate it for you.
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