Early Repayment Charges Explained
This is one of the easier pieces of mortgage related jargon to understand. If you repay your mortgage early, or perhaps overpay on a repayment, then an additional charge can be levied to you, and this is the early repayment fee or charge. Different lenders will have different rates at which they charge this fee and different levels at which it is levied (for instance an overpayment of 20% may trigger an ERC with one provider but 25% with another).
Also this charge will tend to apply if you remortgage to another lender. Some mortgage providers don't charge early repayment charges on all products. If there is a good possibility of you making overpayments or paying off the mortgage early then it is important to understand what the early repayment charges are going to be for your mortgage.
Property Articles
We hope you find this mortgage glossary / explanation of mortgage terms useful. You might also be interested in our articles on a range of property related issues, a selection of which are listed below:- Equity Release Considerations
- Buying At Auction
- Questions to ask when buying abroad
- Renting Out a Room
- The Auctioneer
- Property Surveyors
- Looking after a let property
- Mortgage Advisers Explained
- Green Mortgages
- Spain and Utility Services
- Business Transfer Agent
- Lifetime Mortgage
- Home Information Packs explained
- Repayment Mortgages
- Overseas property mortgages
