Mortgage Meadow

Early repayment charge calculator

Two figures, kept apart because they answer different questions: what an overpayment above your yearly allowance would cost, and what clearing the whole balance today would cost. Take the rate, the end date and the allowance off your own mortgage offer — nothing here is assumed on your behalf, and nothing you type leaves this browser.

The rate in force now, from your offer.
The last day it applies — that day included.
What you may overpay each year with no charge. It is in your offer, in the section on early repayment — we never assume a figure, not even the common 10%.
Penalty-free left—enter the allowance from your offer — we never assume one
This overpayment costs—not worked out until the allowance is entered
Clearing it all today£5,400a different question — the whole balance, not an overpayment
Charge lifts4 October 2028the first day nothing is charged

Every figure here is worked out from what you entered — your charge rate, your allowance and what it is a percentage of. Lenders differ on all three, and on when the allowance year turns over. This page takes the allowance year as starting today, with the balance you entered as the balance at its start; your own year may run from the mortgage anniversary, or from the first of the month after completion. Your offer is the document that governs. How the allowance works.

Keep track of the allowance as you use it

The allowance resets every year and the charge steps down on a date. The app tracks both against the payments you log, and tells you before a band lapses rather than after.

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Why the two figures are so far apart

A redemption figure — the charge on clearing the whole mortgage — is a percentage of the entire balance. An overpayment charge is a percentage of the part that went over the allowance, which on a typical deal is nothing at all until the allowance runs out. Put a redemption figure next to an overpayment decision and it overstates the cost by roughly the whole allowance, in the one direction that talks somebody out of paying their mortgage down. So both are shown, labelled.

The two things offers disagree about

What the percentage is a percentage of
Ten per cent of the balance at the start of the year, or ten per cent of the original loan. Early in a term they are close. Fifteen years in they are not — the balance has fallen a long way and the original loan has not moved at all, so the same wording can mean thousands of pounds more or less of penalty-free room.
When the allowance year turns over
Some run from the mortgage anniversary, some from 1 January, and some from the first day of the month after completion. This assumes the anniversary, because it is the only one that can be worked out without a second date. An overpayment made near the turnover and booked to the wrong year is how something that looked free acquires a charge.
The end date includes itself
A band written as “3% until 30 September 2027” still charges on 30 September 2027. The date shown above is the day after, because that is the first day the charge is actually gone.

Questions

What is an early repayment charge?
A charge some mortgage deals apply if you pay off more than the deal allows before it ends. It is usually a percentage of the outstanding balance, often stepping down each year, and it stops on a date printed in the offer. Once every band has passed, there is nothing to pay however much you overpay.
How much can I overpay without a charge?
Whatever your offer states, and the figure has to come from that document rather than from a rule of thumb. It is a percentage per year, and the percentage is taken either of the balance at the start of the allowance year or of the original loan — which produce very different amounts late in a term, since the balance has fallen and the original loan has not.
Is the charge on the whole overpayment or only the excess?
Normally only the part above the allowance. That distinction is the difference between an overpayment costing nothing and appearing to cost hundreds, which is why the redemption figure — what clearing the entire balance today would cost — is shown separately here rather than beside the overpayment.
When does the charge end?
On the date in your offer, and that date is inclusive: the charge still applies on it. The first day you are free of it is the day after, which is the date shown above. Treating the end date itself as free is a costly off-by-one.

This is a calculator, not financial advice. It works out what the figures you entered come to; it does not tell you what to do with the result, and your mortgage offer is the document that governs. See the overpayment calculator for what the same overpayment would save, and the guide to the allowance for how it is worked out.

Related guides: How is an early repayment charge worked out?, Can you overpay a fixed-rate mortgage?.

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