Definitions for "Early Redemption Charges"
Redemption is when the borrower pays off the capital and the interest on the mortgage and thus has full rights to the property. Early redemption fees are the charges incurred for paying off the mortgage early, either to buy the house outright or when you re-mortgage. Always ask about these before you take out a mortgage.
A fee charged by the lender if you pay off all or part of your mortgage before an agreed date or you move the loan to another lender. These charges usually apply on fixed, discounted, or cashback mortgages.
If you want to sell your house or change to another lender, you'll end up paying back your loan early. Many mortgage lenders charge a penalty fee, particularly during any period of fixed, capped or discounted rate. Check it out in advance, so you know what you're letting yourself in for.