Mortgage Fees & Charges
Early Repayment Charges
- If your client repays the loan in full or switches to another
C&G mortgage during an Early Repayment Charge period, they will
have to pay an Early Repayment Charge. The charge will be a
percentage of the amount repaid or switched as shown in the product
tables.
- If they make a part repayment, there will be no charge if the
amount repaid is less than 10% of the loan's capital balance (as at
1 January) in any year. For larger capital repayments, the charge
will apply only to the amount above 10%. Should your clients make a
10% repayment and then go on to repay the whole mortgage within 6
months, the ERC will also be payable on the 10% repayment.
Moving home
If the loan is redeemed to take out a new
C&G mortgage to move home, and the original loan ends and the
new loan starts on the same day, the charge will not apply provided
that any remaining part of the original loan’s Early Repayment
Charge period and, where appropriate, any remaining part of its
product rate are transferred to the new loan.
If the new loan is for a smaller amount, the
customer must pay part of the Early Repayment Charge based on the
difference between the two loans.
If the new loan does not start on the same day
that the original loan is redeemed, the Early Repayment Charge must
be paid, but there are circumstances when it will be refunded.
These are:
- If the loan that’s being redeemed started
before 1 November 2008 – then the Early Repayment Charge will be
refunded provided that the new loan starts within 12 months of the
original loan being redeemed. However, for loans that started
before 1 November 2008 only, if there are less than 12 months of
the Early Repayment Charge period remaining, the Early Repayment
Charge will be waived.
- If the loan that’s being redeemed started on
or after 1 November 2008 – then the Early Repayment Charge will be
refunded if the new loan starts within eight weeks of the original
loan being redeemed.