Covid 19 Status

In line with HM Government requirements to fight the spread of Covid-19 we have measures in place to ensure that we protect our staff, their families and the wider community, but also to ensure that there is minimal disruption to our customers.

Your access to online Multi Agency Credit Reports, Expert Help and Account Management remains unaffected. We take great pride in the support that we provide to our customers and throughout this period will do all we can to minimise the impact on our services. While the country remains in lockdown we will continue to support your queries via a dedicated and experienced team that will be securely working from home, and supported by a Management Team that will continue to be based at our head office and who will be able to provide customer support as required.

The security measures that we have in place to protect your Personal Data, in line with our Privacy Policy, will mean that some elements of our personalised support are affected during this period as our support team will be working with anonymised data when working remotely. Freephone access to our Credit Analysts has been removed during this period while we focus our efforts on continuing to reply to all of your emails and secure messages within one working day.

Thanks for your understanding, and we hope to have full customer support available as soon as possible and wish you well during these challenging times.

What is an...

Early Repayment Penalty

An Early Redemption Penalty (also known as an Early Repayment Charge or ERC) is a fee you may be required to make to a lender if you pay off a loan or mortgage before the scheduled term of the credit facility, also sometimes referred to as a Redemption Penalty. Usually the amount is equivalent to one or two months’ interest, but can be much more on a mortgage.

Typically, the earlier in the credit agreement you repay the loan, the higher the charge as the interest component of the loan repayment makes up a higher proportion of the repayment, the earlier in the loan term it is. An early repayment penalty can sometimes add a considerable cost to your loan.

Any such charges must legally be outlined in the Schumer Box before you apply for a loan. If you feel that you are likely to pay off the outstanding balance early, factor in the cost of the repayment penalty when comparing loans from different lenders.

How much am I likely to pay?

The cost of an ERC can either be determined by a set amount or by a percentage of the loan remaining on the property. This will be outlined in your mortgage agreement.

Are there mortgages without early repayment charges?

Yes, some mortgages will offer this level of flexibility, but it’s something you’ll need to look for before accepting a mortgage, and products like this could cost more in interest. You’re very unlikely to get a lender to agree to change this after the mortgage has begun.

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