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Early Repayment

It is very important to understand what, if any, charges, might apply should you wish to change your mortgage in the early years.

Early repayment charges can range from none at all, to one-six months interest, through to even larger sums. Broadly speaking, the better the deal, or the longer the period of the deal, the greater the early repayment charge.

Early repayment charges do not have to be a problem, so long as they are understood at outset. If the lender and the deal are competitive then it may be worth taking - even if the potential early repayment charges are high - as the assessment suggests you are likely to trigger them).

The key aspect is to avoid deals which you may wish to change in the future and thus incur unacceptable penalties.

Assessing any early repayment charges that you may be subject to is one of the areas in which you will need assistance.

A mortgage adviser can ensure that you are fully aware of any potential charges before you take out a loan.

Your home may be repossessed if you do not keep up repayments on your mortgage.