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MORTGAGECONNECTOR
Rates, repayments and fees

What is Early Repayment Charge (ERC)?

A charge that may apply when repaying or switching a mortgage during a specified period.

Also called: Early exit charge

Definition

An ERC is set by the mortgage terms and can apply to full redemption, a remortgage, a property sale or overpayments above an allowance. The percentage, dates, balance used and exemptions differ by product.

Practical example

A mortgage can have a reducing ERC schedule, but the exact calculation must come from the offer and a current redemption statement.

Why it matters

Include the charge when comparing whether an early switch produces a genuine saving.

Early repayment charge calculator

Source and review

Reviewed 16 July 2026. Product criteria and rules can change.

MoneyHelper: mortgages and interest rates

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