Early Repayment Charge
Particularly during the period of an introductory rate, a lender will commonly impose a charge (sometimes known as an early redemption penalty) if the mortgage is redeemed in part or in full.
A lender may allow a certain amount; say up to 10% a year of the amount borrowed, to be repaid during the early repayment charge period without triggering any charge. (Any such facility would be detailed in a mortgage offer.)
An early repayment charge may go on for a period after any particular fixed, capped or discounted rate has ended. Such an ongoing charge is sometimes referred to as an "overhang" penalty charge.
