ChatterBank13 mins ago
Rule 78 in early repayments.
3 Answers
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?
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For more on marking an answer as the "Best Answer", please visit our FAQ.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.
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.
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