Kensington Early Repayment Charge Calculator

A Kensington early repayment charge (ERC) is a fee that may apply if you repay some or all of a mortgage before the relevant early-repayment period ends. This calculator estimates the charge from the balance you plan to repay and the ERC percentage stated in your mortgage offer; check your current documents for the actual rate and any allowance or exceptions.

Formula

The estimated charge is the amount repaid early multiplied by the ERC percentage, divided by 100. The total shown adds that estimated charge to the repayment amount.

• bal is the portion of the mortgage being repaid early, in dollars for the calculator display.
• pct is the ERC percentage applying to that repayment, entered as a percentage number (for example, enter 5 for 5%).
• charge is the estimated ERC, in dollars.
• total is the repayment amount plus the estimated ERC, in dollars; it does not include other possible amounts due.

In symbols: ERC = repayment amount × ERC percentage ÷ 100. This is a simple percentage estimate, not a quote from Kensington. If your mortgage terms use a different calculation, tiered rates, or a specific balance definition, the mortgage documents and lender’s redemption statement take precedence.

Worked Example

Using the calculator defaults—$200,000 to repay and an assumed 5% ERC:

1. Convert the percentage to a decimal: 5 ÷ 100 = 0.05.
2. Multiply the amount being repaid by that decimal: $200,000 × 0.05 = $10,000.00 estimated charge.
3. Add the repayment and charge: $200,000 + $10,000 = $210,000.00 total.

The example percentage is only an arithmetic demonstration. It does not state Kensington’s charge for any particular mortgage.

Assumptions

• The entered amount is the amount to which the stated ERC percentage applies.
• The ERC is a single, flat percentage; the calculator does not model stepped rates or separate calculations by mortgage sub-account.
• The charge is calculated directly from the entered amount, without daily interest, fees, or adjustments.
• The result excludes outstanding interest, administration charges, arrears, other mortgage costs, and any permitted penalty-free repayment allowance.

How Kensington ERCs Work

Kensington Mortgages offers different mortgage products and terms, so there is no single ERC percentage or period that applies to every Kensington borrower. The mortgage offer and conditions explain whether an ERC applies, which dates it covers, how it is calculated, and what repayments—if any—can be made without triggering it. The charge may depend on the product, the mortgage tranche, and when the repayment is made.

An ERC is generally associated with repaying more than the contract permits during a specified period. It can become relevant when selling a property, switching mortgage products, remortgaging to another lender, making a large lump-sum payment, or paying off the mortgage using savings. Merely asking for a balance or exploring options does not tell you what the final redemption amount will be.

Do not assume that the percentage applies to your original loan amount or the full mortgage balance. The terms may define the calculation base differently. For example, a stated percentage might apply only to the amount repaid early, or the contract could specify a more detailed method. Entering a balance into this calculator is useful only if that balance matches the amount and basis described in your terms.

Check Your Documents and Allowance

To find the relevant figures, review your mortgage offer, mortgage conditions, annual statement, and any later product-switch or further-advance paperwork. Look for the ERC period and the percentage that applies on the date you intend to repay. If the mortgage has separate parts, check each part: different portions may have different rates, end dates, or repayment conditions.

Some mortgage products permit a defined amount of overpayment without an ERC. The amount, measurement period, and treatment of unused allowance depend on the specific terms. Do not subtract an assumed allowance from your balance unless the lender confirms it applies to your planned transaction. A repayment that exceeds an allowance can have a charge on the excess, or the contract may handle it another way.

• Identify the exact mortgage account or sub-account being repaid.
• Confirm the planned payment date, because an ERC period can end on a particular date.
• Ask how much of the proposed repayment is within any available allowance.
• Request a current redemption statement or written calculation for a full payoff.

Common Situations and Misunderstandings

Moving home: Some mortgage products may allow a mortgage to be transferred to a new property, often described as porting, subject to product terms and lender assessment. Porting does not automatically mean that no ERC is due: the timing, amount repaid, and conditions matter. Ask Kensington how the existing mortgage and any new borrowing would be treated before relying on this option.

Making an overpayment: A small regular overpayment and a large lump sum can have different consequences if the product includes a repayment allowance. Check the terms before sending extra money; a payment made without confirming the allowance could be treated as an early repayment.

Waiting until the ERC period ends: An ERC may no longer apply after the relevant period, but the exact end date and any other charges need checking. A redemption statement can show the amount payable for a specified date, and the figure may change if the completion or payment date changes.

Switching rates or products: A product transfer, remortgage, or partial repayment may be treated differently under the contract. Do not assume that a new deal automatically removes an existing ERC. Ask for an explanation of how the proposed change affects each mortgage part.

Frequently Asked Questions

How much is Kensington’s early repayment charge?
The amount depends on your mortgage product, the applicable ERC period, the repayment amount, and the calculation in your contract. Check your offer or request a current written figure from Kensington; there is no one charge that applies to all customers.

Can I repay part of my Kensington mortgage without an ERC?
Possibly, if your product permits an overpayment allowance and your repayment stays within its terms. Confirm the allowance, its measurement period, and how the lender will apply it before paying.

Does this calculator give my exact redemption figure?
No. It multiplies the repayment amount by the percentage you enter. A redemption figure may also reflect the contractual calculation method, interest to the payment date, and other amounts not included here.

Will I pay an ERC if I move house?
That depends on the mortgage terms and whether a permitted transfer or porting arrangement applies. Ask Kensington for a calculation based on your planned dates and transaction; moving does not by itself confirm that an ERC is waived.

Where can I find the ERC end date?
Check your mortgage offer and related product documents, or contact Kensington for confirmation. If you are close to the end of the period, ask for the exact date and a payoff calculation for the intended repayment date.

This calculator is an educational estimate, not financial advice; your lender’s redemption statement and mortgage documents provide the figures and terms applicable to your account.

Related

• Early Payment Loan Calculator: See Your Interest Savings
• Early Payment Penalty: What It Means for a Loan
• ATO Early Payment Interest: How It Works

in bal | Balance to repay | $ | 200000 | 0 | 100000000
in pct | Early repayment charge | % | 5 | 0 | 100
out charge | Estimated early repayment charge | $ | bal * pct / 100 | 2
out total | Repayment plus estimated charge | $ | bal + charge | 2