Question about Early Repayment Charges

sec79

I've looking at remortgaging and notice that there are different ERC types. If the ERCs state:

to 31/3/14: 5/4/3/2/1% Sum Repaid

Does this mean that (let's say for arguments sake the mortgage is £50k) that in year one you will pay 5% of the sum you've paid since remortgaging if you need to be released from the mortgage?

The outstanding balances one are straight forward to understand. Would appreciate any clarification.
Thanks

koexelek

In each of the first five years, you would pay that yeart stated percentage of the outstanding mortgage balance if you paid it off

sec79

So if the mortgage was for £50k over 5 years with a payment term of 20 years left, would 5% equate to £2500?
Thanks

koexelek

If 5% was the penalty in the year it was redemmed, yes
If it was 4%, it would be £2000
3% £1500

etc