It might seem a long way off, but one day you’ll reach the end of your mortgage payments. Or you’ll be in a position to pay off the remainder of your mortgage early.
When your mortgage term ends and it’s been repaid in full, you may pay an exit fee to close your account. This is typically a couple of hundred pounds and is sometimes included in your initial arrangement fee.
If you port your mortgage – which is where you take out another mortgage on a new home and use the same lender – you may have to pay an admin fee.
Additionally, if you choose to repay your mortgage earlier, you may have to pay an early repayment charge. This is usually calculated as a percentage of the mortgage loan, often between 1 and 5%.
To fully understand the costs, check out our guide on paying off a mortgage early.