Early Repayment Penalty Calculator

An Early Repayment Charge (ERC) is a penalty fee you may have to pay if you want to leave your  mortgage deal before it officially ends. Lenders in the UK commonly include these charges on fixed, discounted, or tracker rate  mortgages to protect their expected profit from the interest they would have otherwise received.

This Calculator Site tool helps you weigh up the costs. It calculates the ERC based on your outstanding balance and the lender's percentage. Then, it estimates the amount of interest you would save by switching to a new deal for the remainder of the penalty period. By comparing these two figures, you can get a clear indication of whether breaking your current deal is a sound financial decision.

The decision comes down to a simple cost-benefit analysis. If the total interest you would save by moving to a new, lower-rate mortgage is greater than the ERC penalty, it can be a financially advantageous move. This calculator provides the verdict by showing you the net financial outcome.

Remember, this is an illustrative tool. The actual interest saved depends on the new rate you secure. Always get a personalised quote before deciding. You might also find our Mortgage Overpayment Calculator useful for exploring other ways to reduce your mortgage term without paying a penalty.