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Understanding Early Repayment Charges

Coming out of your mortgage deal early

On some products if you choose to repay your mortgage within the introductory incentive deal period, or you make a repayment of more than 10% of your mortgage balance, you will need to pay an early repayment charge (ERC). These charges differ by product type and term.

Fixed Rate products

On the majority of our Fixed Rate products we calculate our ERCs as a percentage of the outstanding mortgage balance at the time of repaying the mortgage.  Current charges are as follows:
 

Initial Fixed Period

2 Years

3 Years

4 Years

5 Years

10 Years

15 Years

Percentage ERC

3%

3%

4%

5%

6%

7%

 

Tracker products

Since 16 September 2013 all our standard residential Tracker products are ERC free, including our Flexible Offset and Lifetime Tracker, so there is no ERC to overpay or repay the mortgage. If you had a Tracker mortgage before this date please refer to your mortgage offer Keyfacts Illustration (KFI) to see if there is an ERC on your mortgage.

Benefit packages and solutions

If your mortgage product has a benefit package, such as Homebuyer Solution or Remortgage Solution, you will also be charged a fixed ERC amount on top of your percentage ERC amount if you choose to repay your mortgage before the end date on your benefit package. The additional fixed amount payable varies by benefit package as follows:

  • Remortgage Solution - You will need to repay £250 cashback or a maximum of £200 for the remortgage legal work
  • Homebuyer Solution - You will need to repay the £250 cashback  


Details of the ERC payable will also be shown on your mortgage Key Facts Illustration if you choose to apply.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.