Helping landlords get ahead
Early Repayment Charges
An Early Repayment Charge (ERC) applies to fixed rate mortgages. The ERC is calculated as 1% of the amount repaid early, above any annual overpayment allowance, for each remaining year of the period during which the ERC applies, reducing on a daily basis. However, (after taking your allowance into account) a maximum 5% of your overpayment will be charged.
Pay your mortgage off early: An ERC is a charge you may have to pay if you repay the whole or part of your mortgage early. The ERC also applies if you switch your mortgage rate to another Alliance Surge Bank mortgage product.
You'll have an annual overpayment allowance (AOA) to enable you to make additional payments during the fixed rate period without incurring an early repayment charge. The allowance is equivalent to 10% of the outstanding balance of your mortgage calculated on each anniversary of the start of your fixed rate period. Anything over this will incur an early repayment charge.
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