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.
a fee you have to pay if a loan is repaid or transferred to any of our other mortgage deals in the early years
Charge levied by a lender for withdrawing from a mortgage before a given date specified in the mortgage conditions.
This is a penalty charged on mortgages when the loan is repaid within a set period. Many early repayment charge periods are linked to those of offers, such as capped, discounted or fixed periods. However some mortgage rates have extended early repayment charges which tie-in borrowers even while they are paying the Lender's SVR, although this is increasingly uncommon. An ERC is also known as an Early Redemption Penalty (ERP).
Sometimes a charge is made should the loan be repaid before a specified timespan has elapsed. This is calculated using a formula specified by the lender and can vary. More commonly known as a "redemption charge".
When a fixed interest rate is repaid before the end of its fixed term a charge may apply.
s - On some mortgages a charge will be made if part, or all, of your mortgage is paid-off before a pre-agreed date. This charge may also be incurred if you move your mortgage to another lender. The mortgage Terms and Conditions will state if this charge applies.
If you repay (redeem) your mortgage at any time prior to the end of the mortgage term you may have to pay certain fees or an interest penalty (redemption penalty). If the mortgage is repayed in the early years there may be a heftier penalty, a product penalty. An extended redemption tie-in means that this penalty will continue to be payable beyond the initial term of the mortgage.
Fee charged if you repay all or part of the mortgage early. This is normal if you have a fixed, discounted, capped or cash back mortgage.
If you have special mortgage terms with your lender, such as a fixed or discounted rate, you may be charged an ERC if you repay your mortgage (either in part or in full) before the end of the deal term. An ERC could be a percentage of the loan or equivalent to a set number of monthly repayments.
A fee you may face if you pay off all or part of your mortgage earlier than agreed. It is designed to compensate the lender for the interest that would've been paid had the mortgage run the full term. Not all mortgages feature these charges.
This is charged if the loan is repaid prior to a set period as laid down in the terms & conditions of the loan
A charge payable on certain types of mortgage if it is redeemed or partly redeemed within the early repayment charge period. The amounts charged by the lender are normally disclosed on the mortgage quotation and within the mortgage offer letter.
A fee you may have to pay if you repay your mortgage early, or within the tie-in period if you have been paying a fixed or discounted rate . If you are lucky enough to be able to pay your mortgage off early you may not balk at this charge, but if you are simply redeeming the mortgage to move to another lender, it’s worth finding out exactly how much the charge will set you back - it may eliminate the advantages of moving.
This is a penalty charged on traditional (i.e. non-Flexible) mortgages when the loan is repaid in full within a set period. Usually it applies on a pro rata basis when capital repayments are made outside of the agreed monthly payments. Many Early Repayment Charge periods are linked to those of offers, such as Capped, Discounted or Fixed rate periods. However, some mortgage rate have extended Early Repayment Charges which tie-in borrowers even while they are paying the Lender's SVR.
SOME OF OUR MORTGAGE PRODUCTS REQUIRE THAT IF YOU PAY OFF ALL OR PART OF YOUR MORTGAGE (OVER AND ABOVE THE USUAL MONTHLY REPAYMENTS) DURING AN INITIAL PERIOD, THEN THE SOCIETY WILL CHARGE AN ADDITIONAL FEE OR INTEREST - SEE MORTGAGE OFFER LETTER FOR DETAILS.
This is a fee that is incurred if you pay off all (or part) of your mortgage before an agreed date. This is usually in conjunction with a fixed or discounted rate mortgage. The Early Repayment Charges attached to a mortgage can always be found within the terms and conditions of the lender's Mortgage Offer.
A sum which has to be paid if the mortgage is repaid within a certain time scale, following completion. The actual amount due would be dependent on when you redeemed and would be stated in your Mortgage Offer.
These were previously known as 'Redemption Penalties'. Many mortgages which include a beneficial period, such as fixed-rate, capped-rate, cashback and discount rate mortgages, commonly carry Early Repayment Charges that can in some cases persist long after the initial special rate itself has expired. This can make it expensive to move to another lender in the first few years of the loan. Bradford & Bingley website shows you the size of any Early Repayment Charges and how it changes over time.
A charge payable on certain types of loan if it is repaid or partly repaid within a certain period eg during a fixed-rate period or while a discount applies.
This is charged often on early repayment of a loan, often as a percentage of the amount being paid to redeem.
If fixed rate mortgages(FRM) are noticed in advance a compensation the so-called "early repayment charge" or "redemption penalty" has to be paid. If the interest rates have fallen, the creditor has an interest loss due to the notice. But if the rates are higher the creditor will gladly accept the early repayment or will even grant the compensation.