Paying off more including ERC, or not?

Hi. I have a 19 year mortgage at about £190K on two products averaging at about 2%. I have the option to pay off 10% per year, Early Repayment Charge (ERC) free - which intend to do. I am lucky enough to be able to afford to pay off a little more than that. My question is it worth paying off more and incur a 5% ERC against what I will pay in interest over the 19 year term if I do not. I have searched google and these forums but cant find an answer.  I also could not find an online calculator for this question, as they all were focused on if it was worth switching lenders and the fees involved against current rates. Any help or insights greatly appreciated. 


  • caeler
    caeler Posts: 2,605
    Mortgage-free Glee! Photogenic Name Dropper First Post
    I’ve been in a similar situation. 2 mortgages, I overpaid the max 10% on the smaller one (both on same rate but the smaller ones fixed deal was ending earlier with lower ERC fee) and I saved enough to pay it off incurring a 1% ERC. I’d have preferred to have avoided that but I will have saved 10 times over in interest had I not repaid it! I’m now focused on what’s left and will incur another ERC next year when I repay that, this time 3% but I’m ok with that. I’d rather be mortgage free. I’ll be repaying 16 years early.  

    I used this calculator to figure out how much I’d interest I’d pay with no over payment and with 10% overpayment and then I could work out if I was happy with paying an ERC.

    Good luck! 
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