Early Repayment Charge
Because this is a fixed rate product, if you make any loan repayments before you are required to, this will lead to unexpected costs for the lender (Seniors Money).
An Early Repayment Charge (ERC) will only then arise if you repay some or all of the loan within 10 years of taking it out. Even then an ERC will only arise if interest rates are lower than when the loan was taken out and if you are not eligible for one of the exemptions described below.
In such circumstances, an ERC may arise if you:
- repay more than 10% of the original loan balance in any one year within 10 years of taking it out or,
- voluntarily repay the full loan balance within 10 years of taking it out