Bank and break fees

[rubeexxcube]

Trying to decide what to do with our house currently rented out in the UK (we are renting overseas). Can anyone tell me how break fees work with the bank? DH thinks it applies always while you have a mortgage but I thought it was just for the fixed period?

Do you mean early repayment charges? They usually apply for the length of your mortgage deal - so if you have a five-year fixed deal, you pay ERP if you repay either by moving to another mortgage or selling in that time. They are usually tapered so you might pay 5% of total borrowed in the first year, 4% in the second etc.

I'm not sure - yes it could be. Essentilly the penalty for coming off a fixed deal? Didn't realise they were tapered - thank you!