Fixed rate loan - early payment penalty

K

kkelly77

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Can anyone shed some light on this subject? I caught the tail end of the news on the radio yesterday. I believe there is some new legislation coming into effect that a person can now clear a fixed rate load early WITHOUT incurring any early repayment penalties. Is this correct? If so, when will this be coming into effect?

I currently have a fixed rate loan I want to clear with another lender thats offereing 1.1% less than what I am paying now AND with no setup fees, early repayment fees etc. Thanks.

K.
 
Haven't heard anything about that and cannot find any mention of it. I would be very surprised if such legislation was introduced.
 
I think the poster is referring to proposed EU legislation. RTE report here.

"Under the measure, consumers will have to be given standardised information about loans so they can compare offers easily and thereby spur competition to drive down the annual percentage rate of interest.
People would also have a right to withdraw from a loan within 14 days - a new feature in many EU states - and to repay the loan early with a cap on the amount.

The rules cover personal loans between €200 and €75,000 and are intended to open up the market across national borders.

National rules will still apply to loans above €75,000.

The new rules will come into force in 2010."
 
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