Nowadays, it is usual for most mortgage deals to have a relatively short life.

Fixed rate, Discount and Tracker mortgages might run for between two and five years, although it’s possible to find deals over 10 years. Whatever the term of the mortgage offer, if you decide to terminate the deal before it ends, you will probably have to pay the Mortgagee an Early Redemption or Repayment Charge (ERC) which, in most cases, is charged as a percentage of the loan.

These charges can add up to thousands of pounds so make sure you think carefully about how long you tie in for in the first place. We can help you find the right deal for your circumstances.

Additional to an ERC, there is another charge that might be payable under the terms of your mortgage. It is usually called an Exit Fee and it is a charge made by the lender for simply closing your mortgage account. This might be because you have decided to switch to another lender or remortgage to another deal with the same lender. But it can also be charged when you just finish paying off your mortgage.

When closing your account it is not unusual to be charged an exit fee, mortgage completion fee, deeds release fee or exit administration fee. At the time of writing these fees are usually between £50 and £200.

For more information contact our mortgage advisers on 01628 507477.

Recent posts

The average seller’s asking price dropped by 0.4% in July, a bigger drop than we have typically seen. 

We explore the differences between Millennials and Gen Z and what both generations ideally want from a new home.

Should you overpay your mortgage? If you can put extra cash away you need to seriously consider whether you should pay more off on your mortgage or put it into a savings account.

Buying a property, especially in the current climate, is a big decision for first time buyers. We have listed a few tips that can help you buy your first propertyy

Does the time of year make a difference in house purchases? The answer is, yes and no.

The popularity of buying a house can vary depending on various factors such as regional trends, how the economy looks, and of course personal circumstances. 

If you are looking at putting your house on the market, you may want to consider giving your garden some TLC. Small changes can make your outside space a lot more attractive to potential buyers resulting in a faster sale.

Getting on the property ladder is a big milestone in life, and is not something to take lightly. There are several things to take into consideration such as saving up for a deposit, finding your dream home, and finding the best mortgage product to suit you. Here we look at UK first time buyer statistics.

If you are struggling to get over the hurdle of saving enough deposit due to being in a rental property, but wish to purchase your own home, you may be able to with a 100% mortgage. You will need to meet certain requirements and be financially stable.