Are there fees for changing my loan terms?

2 min read

Variation feeFor material changes

Minor tweaks freePayment date, e.g.

Re-underwritingBigger changes cost more

Ask firstGet the fee up front

What counts as a change

Changes range from the trivial to the substantial. Moving your payment date a few days is usually a free administrative tweak. Extending the term, reducing the monthly payment, taking a payment holiday or restructuring the facility are material variations that require the lender to redraw the agreement and often re-check affordability — and those can carry a fee.

Why bigger changes cost money

A material change means re-underwriting: the lender has to satisfy itself the new arrangement is still affordable and update the legal documentation. That work has a cost, and a variation or amendment fee covers it. On a secured facility, a change touching the security may also incur legal and registration costs. The fee is not a penalty for asking — it reflects genuine work.

Managing the cost of a change

Before requesting a change, ask the lender exactly what it will cost and whether the change is even possible on your product — some flat-rate and factor-rate facilities cannot be varied. Weigh a variation fee against the alternative, which is sometimes refinancing onto a new facility entirely. If your circumstances have changed for the worse, say so early: lenders handle a proactive restructuring conversation far better than a missed payment.

See can I change my repayments and restructuring a loan. If you are struggling, read what to do if you can't repay.

Frequently asked questions

Is there a fee to move my payment date?

Usually not for a small shift — moving the collection date a few days to align with when your customers pay is generally treated as a routine administrative change and offered free. Larger changes, like halving the monthly payment or extending the term, are variations that may carry a fee because they require re-underwriting.

Will asking for a change hurt my relationship with the lender?

No — a proactive, well-explained request to adjust terms is normal and lenders would far rather have that conversation than see a payment missed. What damages a relationship is silence followed by arrears. If your cash flow has shifted, raise it early; a variation fee is a small price for keeping the account in good standing.