Early Repayment Charges, often abbreviated as ERCs, are fees that borrowers may incur if they choose to pay off their mortgage or a portion of it earlier than the agreed-upon term or before a specific period, typically the fixed-rate term or the initial deal period, expires. These charges are designed to compensate lenders for the interest they would have earned had the borrower continued with the mortgage as initially agreed. ERCs can vary significantly depending on the mortgage terms and the lender’s policies. They are typically calculated as a percentage of the outstanding mortgage balance or based on a specific formula outlined in the mortgage agreement. At OpenDoor Mortgages, we provide expert guidance on mortgage terms and conditions, including Early Repayment Charges, to ensure you have a clear understanding of any potential fees associated with your mortgage. Our goal is to help you make informed decisions about your mortgage, whether you’re considering early repayment or other options.