TSB Early Repayment Charge: How to Estimate It

A TSB early repayment charge (ERC) is a fee that may apply if you repay some or all of a mortgage early while an ERC period is in force. There is no single charge for every TSB mortgage: the amount and conditions depend on your specific mortgage offer, so use the calculator below for a rough percentage-based estimate and check your documents for the actual terms.

Formula

The estimate is the amount repaid multiplied by the ERC percentage. The combined figure adds the estimated charge to that repayment amount:

• Estimated charge = B × R ÷ 100
• Estimated total = B + estimated charge

B is the mortgage amount being repaid early, in dollars for this calculator. R is the ERC rate, entered as a percentage. The outputs are estimates in dollars. The calculator uses a simple percentage of the repayment amount; your mortgage terms may instead define the charge using a different basis or include other conditions.

Worked Example

Using the calculator’s default inputs, the amount being repaid is $150,000 and the entered ERC rate is 3%.

1. Convert the percentage to a decimal: 3 ÷ 100 = 0.03.
2. Multiply the repayment amount by that rate: $150,000 × 0.03 = $4,500.00 estimated charge.
3. Add the charge to the repayment amount: $150,000 + $4,500 = $154,500.00 estimated repayment including charge.

The result is only as accurate as the balance and rate entered. It does not establish that a charge applies to your mortgage or calculate any separate interest, administration amount or other sum.

Assumptions

• The entered ERC rate applies to the full amount entered as being repaid.
• The repayment amount is the balance to which the charge applies, not necessarily the balance shown on a recent statement.
• The calculation is a simple percentage calculation. It does not model repayment allowances, payment dates, daily interest, fees, taxes, insurance or other mortgage terms.
• All amounts are displayed in dollars for arithmetic purposes; use your mortgage’s actual currency when checking a real quote.

What a TSB early repayment charge means

An ERC is a contractual charge associated with repaying a mortgage earlier than permitted under its terms. It may apply when you pay off the mortgage in full, switch to another mortgage product, or make an extra payment above an allowance. Whether any of those actions triggers a charge depends on the mortgage agreement and when the payment is made.

TSB mortgage products and individual offers can have different ERC periods, rates and calculation rules. The offer or mortgage terms should identify whether an ERC applies, the dates during which it may apply and how it is worked out. A headline percentage alone is not enough to determine the exact amount due.

How to check your actual charge

Before arranging a large overpayment, switching product or paying off the mortgage, check your mortgage offer and current account information. If the terms are unclear, ask TSB for a redemption or repayment quotation that reflects the proposed payment date and amount. A quote can account for the details that this simple calculator cannot.

• Identify the exact mortgage account and product.
• Check the ERC period and the dates it begins and ends.
• Confirm the remaining balance and whether the contract charges on that balance or on another amount.
• Ask whether an annual or other overpayment allowance applies, how it is measured, and whether your planned payment exceeds it.
• Request the charge for the intended payment date; a different date or repayment amount may produce a different figure.

Do not assume that a statement balance equals the amount required to close the mortgage. A redemption quote may also account for interest accrued to a specified date and other amounts set out in the contract. Ask the lender to explain each component rather than treating the calculator’s result as a payoff quote.

Overpayments, moving and switching

Some mortgage terms permit overpayments up to a stated limit without an ERC, while charging for amounts above that limit. The allowance, how it is calculated and whether unused allowance carries over are contract-specific; do not assume a familiar percentage applies to your account. Ask how a one-off payment interacts with any regular overpayment you already make.

If you sell a home or move, the existing mortgage may be repaid, transferred or handled under terms that affect whether a charge applies. Similarly, switching to a different product or lender can involve repaying the current mortgage. These are not automatically exempt from an ERC. Check your offer and get a quote for the particular transaction.

A common misconception is that an ERC is always a fixed amount or that it is always calculated on the full outstanding mortgage. The contract sets the method, and the amount subject to the charge can depend on the repayment and any applicable allowance. This calculator assumes a straightforward percentage applied to the entire entered amount, so it may overstate or understate the contractual charge.

Frequently Asked Questions

Does every TSB mortgage have an early repayment charge?
No. Whether an ERC applies depends on the terms of the individual mortgage and the timing and type of repayment. Check your offer or request a quote for your account.

How do I find my TSB ERC percentage?
Look in your mortgage offer or related mortgage terms for the ERC section, including its dates and calculation method. If you cannot find it, contact TSB and ask for the applicable terms and a current calculation.

Can I overpay without an ERC?
That depends on the allowance and conditions in your mortgage agreement. Confirm the permitted amount, the period over which it is measured and how any existing overpayments count before sending an extra payment.

Is the calculator’s result the amount needed to pay off my mortgage?
No. It estimates only a percentage-based ERC and a total made from the entered repayment plus that estimate. A lender’s redemption quote may include other contract-specific amounts and should be used for an actual payoff.

Can the charge change if I repay on a different day?
It can, depending on the ERC period, the mortgage’s calculation terms and any interest or other amounts included in a payoff quotation. Ask for a quote using the date you plan to repay.

Can TSB waive an ERC?
Do not assume a waiver is available. The charge and any exceptions depend on the mortgage terms and the circumstances; ask TSB whether an exception applies to your specific case.

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

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in bal | Mortgage balance being repaid | $ | 150000 | 0 | 100000000
in pct | ERC rate | % | 3 | 0 | 100
out charge | Estimated early repayment charge | $ | bal * pct / 100 | 2
out repay | Estimated repayment including charge | $ | bal + charge | 2