Features and Benefits

Early Repayment Charges

Most mortgage products charge early repayment charges if you pay off part or your entire mortgage during the period when you are on a lenders special interest rate, for example fixed, discount, tracker, etc. These charges normally apply until the interest rate on the initial mortgage deal expires and then reverts to the lenders standard variable rate. An example of this is a three year fixed rate which has early repayment charges until the end of three years.

Additionally some mortgage products have early repayment charges that apply for a period of time after any special interest rate expires. This means you will have a period were you will have to pay the lenders standard variable rate which may be a lot higher than the interest rate you were paying. These are known as mortgages with extended tie-ins. Mortgages with extended tie-ins may offer a low introductory rate but over a longer period they generally offer poor value for money due to the restrictions of the early repayment charges.