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
6 Garden Tips to Add Value to Your Property
30 Apr 2024
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.
Averages for a first time buyer in the UK
2 days ago
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.
Can I get a mortgage without a deposit?
14 days ago
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.
Reasons to Remortgage your Home
19 Mar 2024
If you are looking at remortgaging your property but you are unsure whether it’s the right decision, we have listed five reasons why it might be for you.
Debt Awareness Week | Consolidating Debts
12 Mar 2024
As the cost-of-living crisis continues, many people across the UK are struggling financially, many of whom are finding it hard to get debt-free.
According to research by StepChange, there are five common reasons people don’t seek help and advice with debt concerns.
Friyay Rate Reviews
6 Feb 2024
Every Friday our experts search the market for the latest rates from every lender saving our clients some serious £'s!
Looking to Extend?
2 Feb 2024
Are you looking to extend your property? There are many benefits to adding an extension to your existing home, here are a few.
Why should you consider Equity Release?
30 Jan 2024
Put simply, Equity Release is where you can release equity (money) tied up in your home for any purpose you like. In this short article, we share some reasons why you may want to consider Equity Release.
More information
Trusted by
