Early repayment charges
We charge a flat percentage of the entire overpayment amount will be charged across the deal period. This makes it simpler for you to explain early repayment charges to your clients.
What you need to know:
- Early repayment charges are set at the start of the mortgage term and remain flat throughout the deal period
- Should your client repay their loan or make an overpayment of more than £500 per month within the initial fixed or tracker term, or within the first 5 years of a Lifetime tracker, an early repayment charge will be payable on the entire overpayment amount. The percentage charge payable is detailed in the table below:
| Deal Term | Percentage Payable |
|---|---|
| 2 year (fixed) | 2.0% |
| 2 year (tracker) | 1.5% |
| 3 year (fixed) | 4.0% |
| 3 year (tracker) | 1.5% |
| 5 years | 5.0% |
| 10 years | 6.0% |
| 25 years | 6.0% (for 10 years) |
| Lifetime | 3.0% (for 5 years) |
