Early Repayment Charges (ERCs) are fees that borrowers may have to pay if they repay their mortgage earlier than originally agreed in the mortgage terms and conditions. These charges are typically designed to compensate the lender for the interest income they would have received if the borrower had continued with the mortgage for the agreed-upon term. ERCs vary from one mortgage to another and depend on the lender’s specific terms. They are often calculated as a percentage of the outstanding mortgage balance or as a specific number of months’ interest. It’s essential for borrowers to review their mortgage agreement and understand the ERC terms, as these charges can significantly impact the cost of repaying a mortgage early. Our experienced team can help you navigate the complexities of ERCs and guide you on the most cost-effective way to avoid and/or manage this.