Early Repayment Charge Calculator

An ERC is a penalty charged by your lender if you repay your mortgage — or switch to a new deal — before your current fixed or tracker rate period ends. It's typically expressed as a percentage of the outstanding balance and decreases each year of the deal (e.g. 5% in year 1, 4% in year 2, 3% in year 3). Always check your mortgage offer document for the exact figure.

It makes sense when the monthly saving on a new lower rate pays back the ERC (and any arrangement fee) well within the new deal period — ideally within 12 months. The longer you have left on your current deal, the larger the ERC and the harder it is to justify switching early. With rates having fallen significantly from their 2023 peaks, many people on deals fixed at 5–6%+ can now justify paying an ERC to access sub-4.5% rates.

Yes — beyond the ERC and arrangement fee, you may pay: valuation fee (£150–£400, sometimes free), conveyancing/legal fees (£300–£600, often free on remortgage deals), broker fee (0–£500, many brokers are fee-free). Add these to your total upfront cost for a more accurate break-even calculation. This calculator includes the arrangement fee — add other costs manually if significant.

Tracker mortgages typically have no ERC, so you can switch at any time without penalty. Standard variable rates (SVR) also usually have no ERC. If you're already on your lender's SVR, there's no ERC — just compare the new deal's rate against your current SVR and factor in any fees.

Yes, for most people. A whole-of-market broker can access deals not available directly, and many are fee-free (paid by the lender). They'll also handle the paperwork and can advise on whether your specific ERC situation makes switching worthwhile. This calculator gives you the numbers — a broker helps you act on them.