Early Repayment Charge
An early repayment charge is a fee some lenders charge if you repay or switch your mortgage before your agreed deal ends..
1 min read Buying a Home
What it means
An early repayment charge is a fee some lenders charge if you repay or switch your mortgage before your agreed deal ends.
Example
You leave a five year fixed-rate mortgage after two years and so have to pay an early repayment fee.
Why it matters
Understanding these charges helps you compare the true cost of remortgaging.
These charges are most common during fixed-rate periods.
Will I always pay one?
No. It depends on your mortgage terms.