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| Early Repayment Charges A fee charged by the lender if you pay off all or part of your mortgage before an agreed date or you move the loan to another lender. These charges usually apply on fixed, discounted, or cashback mortgages. Also known as Early Redemption Charge (ERC). Endowment Mortgage An interest only mortgage linked to an endowment policy designed to give a maturity value at the end of the mortgage term sufficient to repay the loan OR pay off the loan on earlier death. Whether there are sufficient funds at the end of the mortgage term to repay the mortgage depends on the investment performance of the endowment policy. Equity The difference between the value of a property and the loans secured on it. Exchange of Contracts Both buyer and seller are legally bound to proceed when contracts have been signed and exchanged between the solicitors of all parties (not in Scotland). |