Charges paid to the lender in compensation for lost interest if you redeem your mortgage ahead of schedule. During a discount period you will be severely penalised if you try to switch to another product or mortgage provider. Penalties can be stepped just like discounts, and can be particularly severe within the first year. This is to ensure that the costs that the lender endures in setting up the mortgage are always covered. Penalties can be a fixed sum of money, though are often proportion of the loan. With cashback mortgages, you often have to repay the amount of money you received as cashback.
Fee in re-mortgaging loans.
The financial penalties incurred when repaying a mortgage earlier than an agreed date.
Certain mortgage deals may carry a penalty if the mortgage is redeemed prior to the end date of the deal taken out.
When a loan is redeemed (paid off) early, either in full or in part, many lenders will charge a fee. This particularly applies to Fixed, Discounted or Capped rate loans or mortgages.
As part of your mortgage agreement, you may be responsible for a charge if you pay off your mortgage earlier than agreed.
These are penalties imposed by a lender under a mortgage usually in the event of redemption of all or part of the loan before a specified period of time. Early redemption penalties are commonly imposed where a lender provides special rates or some other financial incentive under the mortgage. The penalty is designed to make it difficult for a borrower to change the mortgage to another provider during a certain period of time from the start of the loan.
Remortgage | Removal Fees | Repayment Mortgage | Right to Buy Mortgage
See Early Redemption Charge.
When a loan is redeemed (paid off) early, either in full or in part, many lenders will charge a fee. The actual amount charged or the way in which it is calculated will be detailed on your Credit Agreement.
Penalties levied by the lender when a borrower pays off the mortgage before the end of the agreed redemption period. These are often charged on fixed, capped or discounted rate mortgages.
If you want to pay off your mortgage early, you may have to pay a fee during the early years of the loan. The fee may be equivalent to a certain number of months' interest, or it could be a percentage of the loan. Some lenders only charge a redemption penalty during the time of the special deal they offer. Others may tie you in for a number of years afterwards. If you think you may want to repay early, check what conditions apply before you decide which type of mortgage you want
See "Early Repayment Charges"
These are the charges that some lenders make if you decide to move your mortgage.
When a loan under a mortgage is repaid before the agreed date, there may be penalties and fees due to cover the lender's lost investment and administration costs.
Amount charged by your lender for paying your loan entirely before the term is over.
If you repay your mortgage early, or switch lenders, whilst on a special mortgage deal, you may have to pay a redemption penalty to the mortgage lender.
A penalty that has to be paid when a customer decides to move lender. Usually they apply within the term of a fixed rate, capped or discounted mortgage.
