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.
a charge made by the mortgage lender if the loan is repaid or moved to another lender before the agreed date.
A charge made by a lender if a loan is repaid or moved to another lender before the agreed date. Not applicable to all loans.
fee charged to unitholders who redeem or switch out of their units within 30 or 90 days of their original purchase. Should an investor choose to redeem or switch during this time, a 2% fee would be charged and paid to the fund for the benefit of other unitholders.
A Charge applied to repay a secured loan within a specified period, normally shown as a number of monthly repayments.
If you decide that you want to sell your property or remortgage then you will be redeeming you mortgage early. Most lenders charge a penalty fee, especially during any period of a fixed, capped or discounted rate. Be sure you are clear about any potential penalties when you are about to take on a mortgage.