Mortgage Redemption Fees - Early Mortgage Redemption Fees Help
Mortgage Redemption is the action of paying-off your mortgage borrowings. Early redemption charges may be payable if a mortgage loan is paid off near the beginning of its term.
Early redemption fees are usually calculated in one of four different ways:
- a percentage of the original mortgage loan value
- a percentage of the balance still owing on the mortgage
- a number of months' interest
- a percentage of the amount already repaid
The early redemption fee can amount to a substantial amount (thousands of pounds in some cases) so check what the amount could be when you take out your mortgage. Pay particular attention to to any penalty that will be incurred if the loan is repaid prematurely. Mortgage offers with hefty early redemption fees running up to the end of the fixed rate period or even beyond should be treated with the greatest caution.