Definitions for "Early Repayment Charge"
Keywords:  erc, redemption, svr, redeem, tie
A charge payable on certain types of loan, if the loan is repaid or partly paid back before the end of an agreed time.
This is a potential penalty levied by the Lender if you pay off all or part of your mortgage before the end of the special offer period or the specified "over hanging" penalty period. For example a three year fixed rate mortgage where the early repayment charge will apply for the first five years.
With some mortgages you have to pay an early repayment charge if certain things happen. For example, if you pay off some or all of your mortgage, or you transfer to a different mortgage rate before the end of the special rate period.