Have I Got An Early Repayment Charge / Pre Payment Penalty On My Mortgage

When arranging any type of finance whether it be a loan or a mortgage it is important you understand all the terms and conditions including any early repayment charges or pre payment penalties you may incur if you pay the money back early.

A pre payment penalty is an amount charged by the lending company for paying off a loan or mortgage before the scheduled date of payment. Typically, that amount is less than the interest the lender would have collected on the loan, had the payments run their natural course.



Remember that the principal is the amount of the original loan while the interest is amount charged by the lender for allowing you to borrow that money. Some companies don`t charge anything for early payoff. Those companies simply put that money back into their lending pool and make another loan, collecting the interest from that loan. But some companies charge a penalty for that early payoff because they`ve lost the interest you would have paid over the course of the loan. Penalties and terms regarding early payoff are typically included in the `terms and conditions` section of your loan agreement. Be certain you know what`s going to happen before you make that early payment. It may be a better financial decision to put that money into an interest-bearing account and make payments as scheduled.

If you are looking at remortaging then a pre-payment or early repayment charge may impact your decision, in some instances you may consider a different mortgage offer such as a second mortgage (secured loan) which can be arranged in tandem with your current finance allowing you keep your current finance in place without incurring any penalty charges. First Choice Finance - Qualified Mortgage Advice

Your choice of Mortgage will be one of the most important decisions you need to make.

We understand that your situation is unique and that you have your own circumstances. Our GOAL is to offer appropriate home mortgage advice ensuring that you end up with a mortgage that suits your needs, lifestyle, and plans.

With more than 30 years` experience as a mortgage advice company, we have shared knowledge and given mortgage advice to many satisfied home owners. Offering mortgage advice will accomplish your goals through excellence, based on integrity and knowledge.

Certainly, you may contact me with any mortgage questions that you may have, we will gladly give you advice!

Finding the right mortgage deal from the many thousands of schemes available can be an overwhelming experience.

Finding the right mortgage adviser is the first step.
First Choice Finance is committed to providing quality mortgage advice comparing deals from a wide selection of lenders on the mortgage market.

We will offer you a free initial consultation and can provide advice and a no obligation quote.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

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