Early Repayment Charges

Find out how an Early Repayment Charge could affect your mortgage.

Your home may be repossessed if you do not keep up repayments on your mortgage.

What is an Early Repayment Charge?

In providing your mortgage, one of our aims is to try to offer as much flexibility as possible with regard to your mortgage payment arrangements. We usually put specific funding arrangements in place to support mortgage products, such as fixed, tracker, discounted and capped mortgages. Often we are locked into these arrangements regardless of the actions of borrowers and changes to interest rates. Because of this, with many of our mortgage deals, there is a charge applied if you decide to repay your mortgage early or you decide to switch to a new deal. This is normally shown as a percentage of the total amount of the amount you are borrowing.

When an Early Repayment Charge may apply

  • If you pay off your mortgage before your current deal ends (for example by moving to another lender or by paying off a lump sum)
  • If you make any overpayments above the limit of your mortgage deal
  • If you make a transfer (either in full or in part) to another mortgage deal or to our Standard Variable Rate

Please refer to the factsheet covering your mortgage product and also your offer document for full details of Early Repayment Charges which may apply to your account.

No Early Repayment Charges will be payable in the unfortunate event of the death of a borrower during the mortgage term where the loan is repaid, for example, from the proceeds of a life insurance policy or sale of the property.

Details of the mortgages that have an early repayment charge and the level of the charge is detailed in our current mortgage range . How we calculate the early repayment charge for a specific mortgage deal is shown in the product details for each deal.

Things to be aware of

All of our mortgage deals allow you to overpay up to 10% of your mortgage balance each year. Some products allow more. The Early Repayment Charge will be calculated on the amount paid over the limit.

Please check your product factsheet and mortgage offer for full details of overpayment restrictions and Early Repayment Charges.

Read our full guide on making overpayments to find out how you can arrange to make additional payments on top of your monthly mortgage payments and how to avoid going over the overpayment limit.

Related pages

Moving home

All of our mortgages products are transferrable (or ‘portable’) so if you move house within the fixed, capped, discounted or tracker rate period we will pay back any early repayment charge you incur.

This refund is subject to conditions, which will be outlined in your mortgage offer issued to you and dependent on you borrowing the same amount, on the same deal.

Read more on our Moving Home guide page about taking your mortgage with you when you move.

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Speak to one of our friendly mortgage advisers about your options.

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