Head office
Archdeacon House
Northgate Street
Ipswich
IP1 3BX
01473 927 365
Woodbridge Office
28 Church Street
Woodbridge
Suffolk
IP12 1DH
01394 388 488
Homebuyers are enjoying record low mortgage rates, but must make sure they understand that there will usually be a penalty to pay if they want to leave their deal early.
In return for securing the lower rates on the market, borrowers are typically ‘locked in’ to their deal by lenders imposing hefty early repayment charges. These are usually charged as a percentage of the loan.
Early repayment charges are payable if you want to come out of a deal early, switch lender, or make significant capital repayments over the 10% that is typically allowed.
Only once the deal ends, and the borrower moves onto the lender’s standard variable rate, will they be free to move without penalty.
Early repayment charges can run into thousands of pounds, and the earlier you want to get out of your deal, the steeper the cost will be.
Borrowers should therefore always read their mortgage small print carefully before signing up to any deal so they understand the true cost of leaving that deal before it ends.
There are options available for borrowers looking for greater flexibility. Some lenders offer deals with no early repayment charges, which would suit those wanting to overpay their mortgage, or who think that their circumstances might change before their deal ends.
Before committing to any mortgage deal, borrowers should always consider their future plans and the financial impact that early repayment charges could have.
Archdeacon House
Northgate Street
Ipswich
IP1 3BX
01473 927 365
28 Church Street
Woodbridge
Suffolk
IP12 1DH
01394 388 488
5 & 6 Crescent Stables
Upper Richmond Road
Putney
London
SW15 2TN
020 4524 9345
Poplar Hall Barn
Low Road
Debenham
Suffolk
IP14 6BS
01449 723 500
Established in 2020, Halls + Halls offers 40 years’ of expertise in the real estate industry. Our team provides an easy to understand, non-negotiable fixed fee product to sell property.