Glossary
Mortgage Terms
ERC (Early Repayment Charge)
An Early Repayment Charge (ERC) is a fee charged by a lender if you repay your mortgage — or a substantial part of it — before the end of your initial deal period (e.g.. a 2-year or 5-year fixed rate). ERCs are typically expressed as a percentage of the outstanding balance and decrease over the deal period
They exist to compensate the lender for the interest they will no longer receive.
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