Early Repayment Charge and Engagement letter: Difference between pages

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imported>Doug Williamson
(Create the page. Source: http://www.financial-ombudsman.org.uk/publications/technical_notes/mortgages-early-repayment-charges.html)
 
imported>Doug Williamson
m (Category added 9/10/13 and spacing)
 
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''Banking - mortgage lending''
''Documentation.''


(ERC).
1.


A charge levied on customers who wish to repay a fixed rate mortgage loan, or certain other mortgage loans, early.
A contract between an audit client and their auditing firm which defines the respective responsibilities of the auditors and the client's management and records matters such as the agreed level of fees.


Sometimes known as an Early ''Redemption'' Charge.
2.


Any similar contract between a client and a provider of professional services.


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.


== See also ==
* [[Audit]]
* [[Contract]]


== See also ==
[[Category:Legal_Documentation]]
* [[Interest rate risk]]
* [[Mortgage]]
* [[Option risk]]
* [[Pipeline risk]]
* [[Prepayment]]
* [[Prepayment risk]]

Revision as of 11:35, 9 October 2013

Documentation.

1.

A contract between an audit client and their auditing firm which defines the respective responsibilities of the auditors and the client's management and records matters such as the agreed level of fees.

2. 

Any similar contract between a client and a provider of professional services.


See also

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