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Hi all, well it's been 3 months since my BR (hasn't time flown!) But I still haven't heard anything back regarding buying the BI back. The OR wrote to me about 2 months ago asking if I was interested and I said yes, I got a written valuation done and sent it all off - but have heard nothing. How long does it usually take?? Also I have read that they OR doesn't take into account early redemption charges on mortgages (I thought they did!) - is this the same for secured loans??

You shouldn't have am early redemption charge on a secured loan surely?

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You certainly could have a redemption penalty (RP) on a second charge secured loan.

It would be dependant on whether it was a regulated (25k or less) or unregulated loan, also the date you took the loan out will effect the amount you will have to pay back.

For example;

- Most regulated secured second charge loans taken out before 31st May 2005 the RP will be subject to the nasty complicated ‘Rule of 78’ (assumes front loading of interest with a discount based on amount paid).

- Regulated secured second charge loans taken out post 31st May 2005 will carry an RP of; one months interest and one months notice.

- Most recent unregulated secured second charge loans will carry an RP of; approx six months interest.


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Hi, I think my secured loan was taken out in May 2005 so I do have early redemption penalties unfortunately (I'll have to dig the paperwork out to double check). Can I assume the OR won't take these into account?