Credit Contracts and Consumer Finance Regulations 2004

Creditor’s loss arising from full prepayment

8 Application of regulation 9

Regulation 9 applies to a fixed rate contract if—

(a)

the contract has one fixed interest rate that is fixed for the whole term (whether or not the contract provides for default interest charges); and

(b)

the contract requires payments of equal amounts to be made at equal intervals; and

(c)

all the variables contained in the formula set out in regulation 9 can be determined with reasonable accuracy.