What does Early Repayment Charge mean?

The early repayment charges are the ‘punishments’ you will have to suffer in case you repay all or even part of your mortgage in its early phase (first years), or if you decide to switch over to another mortgage type/lender. For agreeing to this early repayment charge, the lender usually offers you instead discounted interest mortgage rates or variable ones. If you think that such a mortgage type is not suitable to you and your family from several reasons, then you should check for other variants, because the market is abounding in loan offers.

A very important aspect about a mortgage which charges an early repayment fee is that you have to be steady with your payments and not thinking about changing mortgage or repaying the existing one earlier. It is a matter of staying faithful to your lender: he offers you good mortgage loan terms and you respect these terms, otherwise you’ll have to pay extra.