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Early Repayment Charge

The fee you would have to pay for fully repaying your mortgage or making a lump sum reduction of the balance within a particular period. Borrowers may feel that the charges often in place with mortgages – discounts, fixed rates, capped rates etc, – are acceptable during the rate-control period, but that early repayment charges tying them in for a number of years to a lender’s standard variable rate thereafter are unfair. Flexible mortgages tend to have minimal early repayment charges.