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Hot Topics
- How Much Can I Afford?
- You have to be very careful when buying a house to be sure that you will be able to afford the monthly mortgage repayments – as you risk losing your home completely if you find you simply cannot afford it.
- Company Directors
- Are you a company director and looking for a mortgage, or remortgage to refinance your home? Our mortgage partners can arrange a mortgage for directors and the self employed, even those with less that two years accounts & low profits.
- What Happens If I Can’t Keep Up My Repayments?
- It is very important that if you are having problems meeting your mortgage repayments, you talk to your mortgage lender straight away.
- How Do I Know If I Should Switch Mortgages?
- The mortgage market changes on a regular basis – and it is quite possible that just a few years after taking out your mortgage there will be plenty of better deals out there with more favourable interest rates.
- Right To Buy Mortgage
- What is ‘Right to Buy’?
What Are Redemption Penalties?
Redemption penalties are your lender’s way of getting extra money out of you when you decide to cancel your mortgage agreement early.
All fixed rate mortgages penalise borrowers with redemption penalties, but usually only for the duration of the introductory period. Once that period, which could last anything from one to five years, is over then you are normally free to find another mortgage lender without facing any charges from the existing lender. Make sure you check up on this before you sign an agreement however, as some lenders charge an overhanging redemption penalty, this is where the redemption penalty still applies after the introductory period is over.
The redemption penalty is usually expressed as a percentage of the mortgage total - this could range from 1% - 5% of the total amount borrowed, depending on what stage of the mortgage term you are at when you cancel the agreement.
The only types of mortgage that do not charge redemption penalties are flexible, current account and offset mortgages. If you would like the freedom to end your mortgage agreement whenever you choose, these would be the best mortgages for you.
- Where can i buy a mortgage ?
- What Exactly is a Mortgage?
- Can I Get a Mortgage With A Group Of Friends?
- How Do I Switch Mortgages?
- What happens if i cant keep up the repayments ?
- How much deposit do I need?
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