Definitions for "Early redemption charge"
A fee charged by the lender if you pay off all or part of your mortgage before an agreed date, or if you move the loan to another lender.
Within some mortgage agreements there is an early redemption charge mentioned. This means that if you pay off your mortgage early or transfer the mortgage to a different lender, you will be responsible for a charge.
The additional monies charged by a lender when a loan or mortgage is repaid before the agreed date. This particularly applies to Fixed, Discounted or Capped rate loans or mortgages.