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
Many households are still being affected by the high cost of living, with several people worrying about how they can make ends meet on a monthly-basis. Unfortunately, the cost of bills including, water, council tax, and energy are still rising. Here are some things you can do.
The Renters’ Rights Bill represents a significant milestone designed to enhance the rights and protections of tenants in the rental market. This comprehensive bill aims to foster a more balanced and fair rental sector, ensuring that tenants can enjoy greater security and equitable treatment. It is likely to become law in late 2025.
Limited Company vs Single Name Buy to Let
14 days ago
Owning a buy-to-let property in your sole name versus through a limited company each has its own set of advantages and disadvantages.
Top 10 property price hotspots in 2024
20 days ago
Data from Rightmove shows that Sunbury-on-Thames in Surrey was the number one house price hotspot in 2024. The prices in this area climbed an impressive 12.5% - increasing from an average price of £527,005 in 2023 to £592,926 in 2024.
Buy to Let Stamp Duty Changes April 2025
23 days ago
On the 31st October 2024 stamp duty for those purchasing additional properties increased by 2% from 3% to 5%.
From 1st April 2025 the threshold will be reducing from £250,000 to £125,000
Where did Londoners move to in 2024?
28 days ago
Research from Metro shows that those who chose to move home didn’t actually move that far away. With a 430g pack of chicken costing on average almost double in London than the rest of the UK, it's no wonder some people are choosing a change of scenery to save a few pennies.
Reasons to get a Buy to Let Mortgage
20 Jan 2025
Following recent changes in the Buy to Let market, some investors may find this product less appealing. However, if done correctly, building a buy to let portfolio can be very profitable.
Stamp duty: how is it changing in 2025?
7 Jan 2025
Helping you understand the upcoming changes in stamp duty (SDLT) from April 2025.
More information
Trusted by
