Rule 78 in early repayments.

[Cymru_Cowboy]

According to moneyfacts.co.uk rule 78 is only used by some lenders to work out interest charges. How can i find a list of lenders that do not use this system?

[Oneeyedvic]

Rule of 78's is compulsory for any regulated agreements - if it is non regulated (generally over �25,000 or secured by land) then every lender will have its own system.

Of course, a lender can charge you less if they wish - usually if there is new business on the horizon.

You could try asking for a variable rate agreement - interest can be charged monthly then - but again a lot of lenders will increase the charges to compensate.

If you are looking for a loan secured by land, then I suggest you go to a broker and ask for a secured loan with no redemption penalty.

[Loosehead]

Now I read somewhere that the rulke of 78 was abolished from 1/6/05, although I could have dreamt it!

[Loosehead]

here it is:

http://tinyurl.com/7wysg