With most fixed rate mortgages, lenders don’t expect that the money will be repaid early, so if a customer’s plans change, they can get penalised with early repayment charges (ERCs).
One of the most common reasons for repaying early is selling up and moving house, so at Hodge we created our Early Repayment Promise meaning if a customer repays us in full from the sale proceeds of their home, from day one they won’t incur early repayment charges even in their fixed rate period.
The Early Repayment charge is available on our 50+, RIO and Holiday Let mortgages.
When can customers benefit?
The Early Repayment Promise is available to customers with a 50+, RIO or Holiday Let mortgage who want to sell their property during the term of the mortgage and redeem the loan in full, it offers added flexibility and peace of mind.
The Early Repayment Promise also enables holiday let mortgage customers to dip their toe into the holiday let market, judge how the rental yields are and decide whether to stick or sell without incurring any Early Repayment Charges. Early Repayment Promise may also be documented as Downsizing Protection and also applies to some Equity Release products and Retirement Mortgage products no longer available for new business, see individual T&C’s for full details.
