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Annual Mortgage Statement: What does "Early Repayment Charges" section mean?
LiveOnce
Posts: 476 Forumite
Hello all,
Recently I received an Annual Mortgage Statement.
In it there is a section called Early Repayment Charges with a number in 4 figures.
What does this section mean?
It says "Early repayment charges are payable on this morning until MM DD YYYY".
Does that mean it's a penalty?
Sorry I don't understand so I ask.
Recently I received an Annual Mortgage Statement.
In it there is a section called Early Repayment Charges with a number in 4 figures.
What does this section mean?
It says "Early repayment charges are payable on this morning until MM DD YYYY".
Does that mean it's a penalty?
Sorry I don't understand so I ask.
0
Comments
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Hello all,
Recently I received an Annual Mortgage Statement.
In it there is a section called Early Repayment Charges with a number in 4 figures.
What does this section mean?
It says "Early repayment charges are payable on this morning until MM DD YYYY".
Does that mean it's a penalty?
Sorry I don't understand so I ask.
That is the amount they will charge you if you suddenly decide to pay off your mortgage in full.'I'm sinking in the quicksand of my thought
And I ain't got the power anymore'0 -
It is showing you what early repayment penalty WOULD be charged if you repaid the mortgage in full on or before that date.
It is shown like that on all mortgage statements now.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
If you pay off more than the allowable amount (if there is one?) above the normal monthly repayments, you will be charged an ERC.
Speak to the mortgage co to explain how they calculate it.Debt is a symptom, solve the problem.0 -
Thank you all, that make sense now. Happy Christmas
0
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