question about early repayment charge

sanova76

Hi,


I've received my annual mortgage statement.

It shows my early repayment charge but it says that in 2021 any early repayment charges will cease to apply. Does it mean the bank won't charge me if I make early repayment/pay off my mortgage early in 2021?

I still have about £74K to pay with 13 years to go.


Thanks.

San

obay

sanova76 wrote: »

Hi,


I've received my annual mortgage statement.

It shows my early repayment charge but it says that in 2021 any early repayment charges will cease to apply. Does it mean the bank won't charge me if I make early repayment/pay off my mortgage early in 2021?

I still have about £74K to pay with 13 years to go.


Thanks.

San

The mortgage will go to the standard rate, which means your fix is up and you won't pay to exit your mortgage at all.

Exit, overpay or pay off the balance if you have the funds.

ACG

Whilst you are tied in to a deal, ERCs usually apply.
Once you are on the lenders standard rate, you are free to leave/overpay or tie in to a new deal. If you tie in to a new deal, ERCs will probably apply again.