Credit Union question

Salt001

Don't know if this is the right forum for this question,but here goes.
Does anyone know if a credit union will restructure a loan over a longer period of time?.
For example if you have a 5 year loan term and you run into financial trouble would they restructure to a 10 year term?.

coylemj

Here's a novel suggestion: Go and ask them.

mmc2010

Hi Salt001, CUs don't generally like to go over the 5 year term and is considered an exception to their usual lending policy. However if you are in financial difficulty, definitely go talk to them. They don't want you to go into arrears and may change it to interest only for a while to ease the burden.

Anyone

They can, subject to certain conditions laid down by the Financial Regulator.

Firstly, the CU can only have a certain % of its loan book over 5 years, if they have reached that, then they cant refinance the loan.

Secondly, and this one is important from the members point of view. If you refinace your loan, you cant get another loan until that loan is cleared, irregardless of if your circumstances get better.

The 2nd one is messed up imo, because it basically stops a person getting a loan for up to 10 years.

Salt001

Many thanks to mmc2010 and anyone for the advice