ERC Check

Is it worth paying the ERC to switch?

Sometimes a much cheaper rate saves more than the ERC costs. See your charge for your balance and deal year, then compare it with the interest you’d save by switching now rather than waiting.

Calculate with my figures ↓

Your estimate appears after you select “Calculate my ERC estimate”.

This estimates full repayment using the rate you select. Preset schedules and the 10% allowance are illustrations, not your contract. Your actual ERC basis, tie-in, overpayment restrictions and maximum charge are in your ESIS or mortgage offer; ask your lender for an exact redemption figure. Not financial advice.

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Frequently asked questions

How is an early repayment charge calculated?

The basis is contract-specific. It may be a percentage of the loan, months of interest or another disclosed method. This tool models full repayment using the percentage you select; 5% of £200,000 is £10,000.

Does the ERC go down each year?

It may decrease as a deal approaches its end, remain flat or use another formula. The FCA consumer page says the charge will usually decrease, but the terms of your mortgage decide the actual schedule.

Can I overpay without paying a charge?

MoneyHelper says many lenders allow up to 10% a year without penalties. Your allowance, measurement period and any charge above it are contract-specific, so check your mortgage offer before acting.

When does an early repayment charge apply?

The FCA says a lender is likely to charge one when a mortgage is repaid before the end of a fixed or discounted-rate deal, but some lenders do not. The charge period and triggers are stated in the mortgage terms.

Is the charge on the balance or on the amount I repay?

It depends on the disclosed basis. This calculator assumes full repayment and applies your selected percentage to the outstanding balance. It does not determine a partial-overpayment charge.

Where do I find my exact ERC?

It is set out in your ESIS (European Standardised Information Sheet) or mortgage offer/illustration. You can also ask your lender for a redemption statement, which shows the exact figure to a given date.

Is every mortgage covered by the same FCA rules?

No. The cited MCOB rules apply to regulated mortgage contracts. Product terms and regulatory status can differ, so buy-to-let, business or other specialist borrowing needs its own paperwork and advice.

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