Early repayment of a mortgage occurs when you pay off your mortgage before the end of the agreed-upon mortgage term. This can involve making regular overpayments or paying off the entire outstanding balance in one lump sum, perhaps using money from savings, an inheritance, or the sale of another property.

While early repayment can result in significant savings on interest payments and provide a sense of financial freedom, it’s important to note that some lenders may charge an Early Repayment Charge for paying off your mortgage early. This is especially common in the early years of the mortgage or during a fixed-rate period, as lenders anticipate a certain amount of interest income over the term of the loan.

Always review the terms of your mortgage agreement or consult with a financial advisor before making an early repayment to ensure you understand any potential fees or penalties