Early Repayment Charge Calculator
Calculate the cost of leaving your mortgage deal early and whether switching still makes sense.
Your current mortgage
Most UK fixed-rate deals charge 1–5%, reducing each year of the fixed term
Are you also saving on monthly payments?
Compare break-even against your monthly saving
ERC amount
£4,000
2.0% of £200,000
Always confirm your exact ERC with your lender. The rate may vary depending on how far into your fixed term you are — many lenders reduce the ERC by 1% per year (e.g. 5% in year 1, 4% in year 2).
Early repayment charges explained
An early repayment charge (ERC) is a penalty charged by your lender if you pay off your mortgage, or switch to a new deal, before the end of your fixed or tracker term. ERCs typically range from 1% to 5% of your outstanding balance and are usually structured to reduce the longer you are into your deal — for example, 5% in year 1, falling to 1% in year 5 of a five-year fix.
When exiting early makes sense
If rates have dropped significantly since you fixed, the monthly saving on a new deal may outweigh the cost of the ERC — especially if you have several years left on your term. A break-even period under 12 months is generally considered worth acting on. Beyond 24 months, you would likely be better off waiting until your deal expires and avoiding the charge entirely. A whole-of-market broker can run the numbers across multiple lenders and confirm whether switching early makes financial sense for your specific situation.
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Disclaimer: This calculator is for illustrative purposes only and does not constitute financial advice. Always speak to a qualified, FCA-authorised mortgage adviser before making financial decisions.