early repayment charges


What are early repayment charges?

Early Repayment Charges (ERCs) are fees that the bank will ask you to pay if you want to repay your mortgage early.


Why would I repay my mortgage early?

There are many reasons: you receive an inheritance, you need to sell the house to rent for work reasons/divorce or simply need to switch mortgage deals to get a better deal.


What sort of charges are normal?

Early repayment charges are set by the lender who provides you funding, so they change – some lenders have much lower ERCs. It is common to see a percentage that is matched to the year, for example:

  • 3% in year one.
  • 2% in year one.
  • 1% in year one.

Our mortgage calculator can help you to compare the ERCs on different mortgage products, so you see the difference in all charges.

If you are changing mortgage deal, it’s important to understand how much it will cost you to move to a new one. If the charge was £995 and you were saving £2000 by securing a better mortgage rate, you might still see a benefit of moving deals.

Need more advice? We are here for you on 03300 583 859.


Why choose NM Money?

  • We don’t charge you a thing - our service is fee free
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