Check your mortgage offer — usually 1–5%.
What is an early repayment charge?
An early repayment charge (ERC) is the fee a lender charges if you pay off or leave a mortgage deal before the fixed or discounted period ends. It is usually a percentage of the balance. On many fixes it is higher in the first year and steps down each year. Trackers often have no ERC.
Paying the charge can still be cheaper than staying if the interest you save on a new deal is larger than the ERC plus any new product fee. Some lenders let you reserve a follow-on rate up to six months before the current deal ends, so you can switch when the fix finishes without paying the charge. The figure in your mortgage offer is the one that applies. This calculator compares the charge with the saving. It is not a redemption statement.
Leaving a £200,000 mortgage early with a 3% Early Repayment Charge costs £6,000 — a net cost of £2,400 vs staying put until the fix ends.
How ERCs work
The formula
ERC = outstanding balance × ERC %. On a £200k mortgage with a 3% ERC that's £6,000. The ERC is charged on the balance at the time of early repayment, not the original loan.
Alternatives to paying
- Port the mortgage to a new property
- Use your 10% overpayment allowance each year
- Wait — most ERCs end at the fix end date
- Reserve a new rate up to 6 months ahead
Frequently asked questions
What is an Early Repayment Charge?
A fee your lender charges if you repay (or remortgage away) during your fixed or discounted period. Usually a percentage of the outstanding balance — typically 1–5%.
How do I find out my ERC?
Check your mortgage offer document or call your lender for a redemption statement. Many ERCs step down each year of the fix (e.g. 5% year 1, 4% year 2, 3% year 3).
Can I avoid the ERC?
Yes if you wait until the fixed period ends (most lenders let you lock a new deal up to 6 months ahead with no commitment). Some lenders also let you port the mortgage to a new property without ERC.
Is it ever worth paying the ERC?
If the rate saving over the remaining fix exceeds the ERC, yes. This happens when rates have fallen sharply since you fixed. Use this calculator to run the numbers.
Do ERCs apply to tracker mortgages?
Less commonly. Many UK trackers are fully flexible with no ERC. Check your product details — some trackers have ERCs in a 'lifetime tracker initial period'.
Reviewed by the Mortgage118 editorial team. Excludes fees on the new product. This calculator provides an estimate only and does not constitute mortgage advice.
- 2-year fix
- 1–2%
- 5-year fix
- 3–5%
- Tracker
- Often none
- Tiered
- Falls each year
Always check your mortgage offer — ERC can step down annually.