Early Repayment charges

gil13

I lifted this off a building society website, does it mean 7% of the mortgage in the first 3 years etc (e.g 100k, 7k penalty) ?

Early Repayment Charges
Full or Partial - A penalty equivalent to 7% of any capital repayments made during the first 3 years, 5% of any capital repayments made during year 4 and 4% of any capital repayments made during year 5, but subject to the 10% allowance shown below.

dunstonh

7% of the extra amount repaid. i.e. if you paid £5000 off the mortgage (not including the normal mortgage payments) then that would be calculated as £5000 x 7%