Extending a Variable Loan
Purpose
Allow
the continued running of a Variable Loan once the maturity date has passed
Access
a Variable Loan from the Variable Loan Account Browse
Process
A Variable Loan may need to have its duration increased. Rather than setting up a new loan, the following process may be undertaken:
Field | Explanation |
Interest Profile Future | This may need to be changed to use a new interest rate for the extension of the loan |
| Open Date | This may need to be changed to be the same as the old maturity date. That way if there is an IFRS spread, the old fees will be fully taken up for the original loan, and any fees on the extended loan will spread correctly |
Instalment Date & Instalment Amount | These may need to be changed if the repayment amount is changing or if the loan is changing from Interest Only to Principal & Interest |
These details may need to be altered if the extended loan has a new repayment profile E.g.
| |
Review Date | Update to a new review date if required |
Maturity Date | Update to the New Maturity Date |
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