Merlin Mortgage Management Ltd

A I B I C I D I E I F I G I H I i I J I K I L I M I N I O I P I Q I R I S I T I U I V I W I X I Y I Z

(E)

Early Repayment Charge (ERC) : This is a penalty charged on traditional (i.e. non-Flexible) mortgages when the loan is repaid in full within a set period. Usually it applies on a pro rata basis when capital repayments are made outside of the agreed monthly payments. Many early repayment charges are linked to those of offers, such as Capped, Discounted or Fixed rate periods. However, some mortgage rates have extended Early Repayment Charges which tie-in borrowers even while they are paying the Lender's SVR.
Also Known As : Early Redemption Penalty (ERP); Redemption Penalty

Early Redemption Penalty (ERP) See Early Repayment Charge (ERC).

Endowment : A repayment vehicle associated with Interest Only Mortgages.

Exchange of Contracts : This is a stage in England, Wales and Northern Ireland that the deposit money is paid and both parties are legally bound to fulfil the agreed conditions of the sale and purchase.

Exclusive Mortgage : This is a mortgage only available to intermediaries through a specific packager, in conjunction with a Lender who provides the funding.