Loan Refinancing need info?

I had a loan of �7000 that i had spend a year of paying leaving 2 years �5118. The monthly repayments was to much, so i was told i could decrease the payments by refinancing the loan. Doing this creates a higher APR and application that has been accepted in principle has went throught, The Refinancing is for the same amount �5118, allowing me to spread the payments from 2 years to 4 years. Therefore i can still pay the loan and not go into default. I was told it has been agreed in principle. I know if they cant change it i will struggle next year. If im not getting a increase and cant afford original payments but can afford new payments,would it be declined