Actuarial Settlement

In the UK all regulated agreements must use the actuarial method to calculate the full settlement figure. This is a requirement of the (Early Settlement) Regulations 2004 in the UK.

The formula used in the app will work out the settlement figure of any loan after a given number of months assuming all repayments are made when contractually due.

This formula can be used on loans with interest added upfront (car type loans) or on loans where the interest is worked out monthly (mortgage type loans).

In addition under the regulations the settlement figure will have 28 days additional interest for loans up to 12 months and 58 days additional interest for loans over 12 months.

Loan Calculator (with Balloon)

This loan app will calculate the loan repayments on typical HP or PCP type agreements using a flat rate of interest per annum (ie 10% of £100 loan = £10 per annum).

In addition to the repayments being calculated the APR will also be provided.

Rule of 78 Settlement

This settlement formula was formerly used to calculate settlement figures on upfront interest type loans until it was outlawed by the (Early Settlement) Regulations 2004 in the UK , due to it being considered to give a less than fair rebate.

However it can still be used on non regulated type agreements (typically company loans) as they full outside the scope of the Consumer Credit Act.

The app defaults to a two month deferment but this can be altered.