Loan - borrow more to change rate

Took out a loan with Monzo last year when rates were high (think my current APR is 11%)

On the app, I can use the borrow more feature, and get a new loan at 6.2%.

Assuming I can do this, borrow more and then immediately pay back the extra money that I have borrowed.

This should leave me with my original balance, but now at a much lower rate and save me money?

Correct; though if you apply for credit later down the line, other lenders might wonder why you needed such a high value loan.

I did this when the loans first came out, applied for twice as much as I needed to get the lower rate and immediately paid half of it back.

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