Advice on FP second Mortgage early settlement

[herbert20]

Re: Advice on FP second Mortgage early settlement

Thanks Wendy I am cautious of contacting them before May for fear of opening a can of worms, which may cause less stress by waiting once the new rules are in place.

[WendyB]

Re: Advice on FP second Mortgage early settlement

But you could still check your loan agreement, if you have a copy, to see if specific provision was made in it for the use of Rule of 78. Personally I don't see that requesting a settlement figure and SAR should rock the boat in any way.. The curent rules are the current rules, the new rules are not in effect yet, and anything you do now should not affect the new rules which aren't even in place yet. And what exactly are the new rules, and how do you feel they will benefit you? Alos, whatever you decide, and whichever rules you work from ,you are still going to have to request settlement and SAR at some point otherwise how will you be able to base a valid case if you don't have all the info?

[herbert20]

Re: Advice on FP second Mortgage early settlement

Hi Wendy, My understanding may be flawed here, but I was under the impression that this type of secured loan was previously regarded as 'unregulated' and that as part of the harmonisation of the consumer credit regs by end of May 2010 all unregulated agreements would be brought under that umbrella (in a nutshell) and that should result in lenders not using 'unfair' ways to calculate early settlements. So my thought was as I am not currently in a position to pay the loan off (particularly in view of having to pay the next 5 years interest payments upfront) I am as well waiting till after the end of May to see how this affects me and whether I may be in a more favourable position.

[WendyB]

Re: Advice on FP second Mortgage early settlement

Well I suppose so.....but is that only from agreements after May 2010 or does it apply in retrospect to loans taken out previousl (ie current loans)? Can't say as it's something I know that much about tbh.
Have you looked at your agreement to see whether specific provision has been made in it for the use of Rule of 78?