Early Repayment Charge (ERC): This is a penalty charged on mortgages when the loan is repaid within a set period. Many early repayment charge periods are linked to those of offers, such as capped, discounted or fixed periods. However, some mortgage rates have extended early repayment charges which tie-in borrowers even while they are paying the Lender’s SVR, although this is increasingly uncommon. An ERC is also known as an Early Redemption Penalty (ERP).