What is an early repayment charge?

An early repayment charge (ERC) is a fee you may have to pay if you:
Pay off your mortgage before your current deal ends.
Make any overpayments above the limit of your mortgage deal.
Transfer in full or in part to another deal before your existing deal ends.

Frequently asked questions

When won’t you pay an early repayment charge?

You won’t pay an ERC if:
A borrower dies during the mortgage term and the loan is repaid.
You move from your existing deal to a new deal after your existing deal has ended. 
Your mortgage deal is ERC free. Some mortgage deals do not have ERCs. 

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 factsheet. 
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?

How much an early repayment charge would be depends on a number of things including the balance on your mortgage and how much you want to pay early. Early repayment charges vary depending on the terms of your mortgage.

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 refund is subject to conditions. You can find these in your mortgage offer. 

This is dependent on you borrowing the same amount, on the same deal.

Mortgage overpayments

You may need to think about more than just ERCs if you’re considering making an overpayment. 

Our handy guide to mortgage overpayments gives you all the facts so you can decide what’s best for you.
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