The Early Repayment Charge
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It is very important to understand what, if any, charges, might apply should you wish to change your mortgage in the early years.
Early Repayment Charges can range from none at all, to 1-6 months interest, to even larger sums.
Broadly speaking, the better the deal, or the longer the period of the deal, the greater the Early Repayment Charge.
Early Repayment Charges per se are not a problem, so long as they are understood at outset. If the lender and the deal are right then it may be worth taking it even if the potential Early Repayment Charges are high (because the assessment is that you will not trigger them).
The key aspect is to avoid those deals where you may wish to change in the future and thus incur unacceptable penalties.
Assessing any Early Repayment Charges that you may be subject to is one of the areas in which you will need assistance.
A Mortgage Adviser can ensure that you are fully aware of any potential charges before you take out a loan.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Last updated on April 06, 2011
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