Morgage Redemption Fees Help and Advice.

Early redemption fees are often charged in the early years of many fixed rate, discount rate or capped rate mortgages when they are repaid early.

Keyfact

Often the level of the early redemption fee levied by the mortgage provider will reduce over time.

 

Exit fees - which you are charged when you pay off your mortgage early, and cover admin charges, land registrations fees and so on can be reclaimed if excessive. Early redemption fees cannot. 



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:

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.