How to avoid paying an early repayment charge
You can take several steps to avoid paying an early repayment charge.
Get a mortgage without charges
Your lender may offer a mortgage deal without early repayment charges – ask about this when agreeing your deal. Some fixed rate mortgages don’t include early repayment charges, or you may be able to avoid paying one after repaying for a number of years.
Overpay at the right time
Overpaying under the limit each year could help you save money on interest in the long term. If you have a mortgage with us, you can overpay up to 10% each year. Always contact your lender before overpaying on your mortgage.
Move lenders at the right time
Lenders may waive any charges you might incur for switching lenders if you only have a few years left on your term.
Port your mortgage
If you move home, you might be able to port your mortgage and stick with the same provider.
Avoiding the Standard Variable Rate
Once your mortgage deal ends, you'll be moved onto your lender's Standard Variable Rate. This can mean paying more interest. If you're sticking with the same lender, make sure you arrange a new deal to coincide with your previous deal ending.
This way, you can avoid being placed onto a Standard Variable Rate. Make sure you're not liable for an Early Repayment Charge when doing this.
