Definitions for "Early redemption fee"
Most lenders charge the borrower in respect of paying off the mortgage early. If you are selling/re-mortgaging a property you must ensure that you check with your current lender to confirm whether they will be charging you any additional fees in respect of this.
This is often associated with fixed, capped or cash-back mortgages. If pay off your mortgage early or want to changes lenders then you may be charged a fee. The lender gives you a package with benefits but you must keep the mortgage with them for a minimum length of time. Some mortgages don't have any early redemption penalties.
If you have a mortgage and want to sell your house or change to another mortgage lender (remortgage), you will be paying back your loan early (redeeming). Many lenders charge this penalty fee, particularly during any period of fixed, capped or discounted rate. Make sure you are clear about any penalties when you take out the mortgage.