Early repayment charges
Find out what an early repayment charge is and how it could affect you.
What is an early repayment charge?
Frequently asked questions
When won’t you pay an early repayment charge?
How do you find out if your mortgage has an early repayment charge?
To find out if you have an ERC, and how much it is, check your mortgage document.
If you have a mortgage with more than one part, you will need to check each part as they might be different.
When does your mortgage overpayment allowance reset?
Your allowances reset annually on the anniversary of the day you opened the mortgage.
This means that you can pay up to the allowance every year without getting an ERC.
How much will an early repayment charge cost?
Most mortgages have an overpayment allowance. This means you can overpay a certain amount each year without needing to pay additional charges.
See your mortgage documents for details of early repayment charges that could apply to you.
Will I get an early repayment charge when moving home?
All our mortgages are transferable (or ‘portable’). If you move within the fixed, capped, discounted or tracker rate period we’ll pay back any ERC you incur.
This is dependent on you borrowing the same amount, on the same deal.
This refund is subject to conditions. You can find these in your mortgage offer.
Will I get an early repayment charge when I switch mortgage deal?
It depends when you switch.
You can secure a new mortgage deal up to 120 days before your current one ends. If you choose for your new deal to start when your current one ends, there is no early repayment charge.
If you decide to switch to a new deal before your current one ends, you will usually have to pay an early repayment charge.
Overpayments before switching mortgage deal
In the final 120 days of your YBS mortgage deal, you can overpay by more than your usual allowance without paying an early repayment charge (ERC).
During this time, you can overpay as much as you like, as long as you don't repay your mortgage in full.
This could allow you to reduce your balance before switching your mortgage deal, which may help you secure a lower rate. The minimum balance for switching deal is £3,000.
To make an overpayment, you can call 0345 1200 100. For advice on your mortgage switch options, you can book a phone appointment with our mortgage team.
Mortgage overpayments
Our handy guide to mortgage overpayments gives you all the facts so you can decide what’s best for you.