Mr Elliott – How are Deferred Establishment Fee/ Early Repayment Fees Calculated?

Deferred Establishment Fee/ Early Repayment Fees were banned from 1 July 2011 for new loans that have settled from that date so you won't need to worry about it for a new loan. However, if your existing loan has settled prior to that date you'll need to check your loan agreement which will outline how the Deferred Establishment Fee/ Early Repayment Fees has been calculated for your specific loan as these can be calculated differently depending on the loan or for each lender.