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.
• If the loan is redeemed to take out a new C&G mortgage to move home, 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 fixed 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 there is less than one year of the early repayment charge period remaining the customer can switch the outstanding balance to any C&G mortgage available at that time and the charge will not apply (see 'Mortgages - making the right choice' for more information).