Early Repayment Charge
From ACT Wiki
Banking - mortgage lending
(ERC).
A charge levied on customers who wish to repay a fixed rate mortgage loan, or certain other mortgage loans, early.
Sometimes known as an Early Redemption Charge.
The amounts of ERCs which lenders can recover from customers in practice may be less than the full amounts in the loan agreements or the break costs to the lender, on the basis that retail customers cannot reasonably be expected to understand them, and - to that extent - are not necessarily legally enforceable in full.
