Cashback Remortgages · Remortgaging
Early Repayment Charges on a Remortgage
An early repayment charge (ERC) is a fee some lenders apply if you repay or switch during a deal period. It is central to deciding whether to switch early.
How ERCs work
An ERC is often a percentage of the balance that reduces each year of the deal. Check your offer or statement for the exact figure and the date it ends, which may not match a fixed period's end exactly.
Some lenders allow limited penalty-free overpayments even within the deal.
Is switching early worth it?
Compare the ERC and any new fees against the savings from a lower rate over the same period. Sometimes waiting until the charge reduces is cheaper; sometimes switching early still saves money.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.