An ERC is a charge for closing a mortgage balance outside the term agreed at the beginning of the mortgage term.

During the ERC period, typically before the end of the fixed or discounted period, an ERC may apply. This amount payable by the mortgage holder depends on the mortgage outstanding and the terms of your mortgage.

The word equity is used to refer to the difference between the value of a property and the amount of all mortgages and/or loans secured on that property. E.g. if a property is worth £150,000 and there is £100,000 outstanding on the mortgage and/or loan, the equity in the home would be £50,000.

When both the buying and selling parties of a property sign copies of the contract and exchange through their legal representatives. The person buying the property is responsible for insuring it from the point of exchange of contracts.