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27 September 2015, HSBC for Intermediaries

Changes to Early Repayment Charge Policy

With effect from 27 September 2015, we've changed the way in which customers are able to make overpayments and how Early Repayment Charges (ERCs) are applied. All customers on fixed and discount rate mortgages now benefit from:

  • Replacement of monthly overpayment allowance: replaced with an annual overpayment allowance
  • More generous overpayment allowance: annual allowance of 10% of the remaining mortgage balance
  • Increased flexibility: customers can choose how they overpay (i.e. can use the internet or make additional payments in branch or on the phone)
  • Charge above allowance only: ERCs are now charged only on the amount overpaid above the annual allowance
 

This is good new as the vast majority of customers will be able to pay more by way of overpayments under our new policy (10% of their remaining mortgage balance) than under our existing terms.

For more details on our ERC policy, see our lending criteria

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