Early Redemption Charge

Business, Legal & Accounting Glossary

Definition: Early Redemption Charge


Early Redemption Charge

Quick Summary of Early Redemption Charge


A charge made by the mortgage lender if the borrower terminates a mortgage in advance of the terms of that particular mortgage. ERCs are generally imposed on fixed or discounted mortgages offering a relatively cheap deal for an initial period. They usually run only until the end of the initial cheap deal period, though some mortgages impose extended redemption penalties which continue even though the borrower has moved back onto the lender’s standard variable rate.




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, from PayrollHeaven.com website: https://payrollheaven.com/define/early-redemption-charge/

Definition Sources


Definitions for Early Redemption Charge are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 0 Views.