When you are looking to apply for a mortgage, then there are several factors which you should consider concerning which is the best option for you. One thing you should think about is whether there is a chance what you will want to make an early repayment. An early repayment is when you want to pay off your mortgage before the agreed end of your deal. There are a number of reasons for why this could result in happening, most notably if you get a job with a higher salary and are therefore able to pay back the money sooner than expected. However, some lenders may charge you an early repayment charge. What is this, and is it possible to avoid this?
An early repayment charge could be incurred if you pay off your mortgage early, so that the lender can make up the lost interest which they would have otherwise made over the rest of your mortgage agreement.
The amount of an early repayment charge varies slightly, but it ultimately is the lender’s decision.
The good news is that it is possible to get a mortgage without early repayment charges. When you are agreeing your deal, you should really flag this up with your lender to avoid incurring future costs. For example, there do exist certain fixed rate mortgages without early repayment charges.
To find out our policies on early repayment, do contact us today at Eminence Mortgages for more information from our helpful and friendly team.