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
Choosing which fixed rate to go for has been a dilemma for many of our clients so far this year. There really isn’t a right or wrong answer, but below we will look into the pros and cons of a two-year and five-year to help you make the right decision for you.
Best UK Mortgage Rates this Week
13 days ago
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
Stamp Duty Rush as Deadline Looms
14 days ago
According to Rightmove, a whopping 500,000 UK homebuyers are rushing to finalise their home purchase before the new Stamp Duty rules change in April.
The UK government is introducing new rules for Energy Performance Certificates (EPCs) that will impact landlords. Here's a summary of the key changes
Should I buy or rent in 2025?
21 days ago
Choosing to buy a house is one of the biggest decisions you are likely to make in your lifetime. There are many factors that influence a house purchase, these include: finances, housing market conditions, and mortgage rates.
ISAs: what are they, and which one is for me
24 days ago
Since being launched back in 1999 Individual Saving Accounts (ISAs) have been very popular for those wanting to put money into savings. There are four types of ISA, and the majority allow flexible saving and the ability to withdraw funds easily. There are financial penalties on certain products, these usually pay the most interest.
Benefits of buying a new build home
28 Feb 2025
According to the Office for National Statistics, last year (ending March 2024), there were 153,800 new homes completed in the UK. To help the housing crisis, the UK government has pledged to build 1.5 million new homes in the next five years.
Check out some of the reasons why a new-build home might be for you.
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.
More information
Trusted by
