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Early Repayment Charge (ERC)

Early Repayment Charge (ERC)

Portrait of Justin Whitelock, founder of Mortgage London, standing in a park

By Justin Whitelock

Founder of Mortgage London (a trading style of City Finance Brokers Limited, authorised and regulated by the Financial Conduct Authority, FCA No. 766295)

A fee that may apply when a borrower repays all or part of a mortgage during a specified period, typically calculated as percentages stepping down over time.

Related glossary terms

Mortgage Advance

The actual money released by the lender at completion, sent to the conveyancer to be used towards the purchase or refinance.

Interest-Only Mortgage

A mortgage where the monthly payment covers the interest charged on the loan but does not reduce the amount originally borrowed.

Return to UK Purchase

A UK property purchase by borrowers currently living abroad and planning to move back to the UK, with lender consideration of return timing.

Consent to Mortgage

A written agreement signed by an adult occupier of a property who is not on the mortgage itself, postponing any rights they may have to the lender’s charge.