Early Redemption Charge and Early leaver: Difference between pages

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''Banking - mortgage lending''.
''Pensions''.
 
(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 ''Repayment'' 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.


A person who ceases to be an active member of a pension scheme, other than on death, without being granted an immediate retirement benefit, thus becoming a deferred pensioner.


== See also ==
== See also ==
* [[Interest rate risk]]
* [[Active member]]
* [[Mortgage]]
* [[Deferred pensioner]]
* [[Option risk]]
* [[Pipeline risk]]
* [[Prepayment]]
* [[Prepayment risk]]
* [[Redemption]]

Revision as of 19:52, 13 August 2013

Pensions.

A person who ceases to be an active member of a pension scheme, other than on death, without being granted an immediate retirement benefit, thus becoming a deferred pensioner.

See also