Hot Topics

How Much Deposit Do I Need?: As a general rule of thumb, you need to make a deposit of about 5 – 10% of the total amount you are borrowing.
What Happens If I Am Refused A Mortgage?: If you are refused a mortgage it will be because you have a poor credit rating and/or a bad credit history.
What Are Flexible Mortgages?: Generally, people rebroke their mortgage deal once every five or six years. They also may change their mortgage lender at the end of a discounted or fixed period. Chances are in that in the time between their last remortgage, the mortgage market will have changed a great deal.
Low Setup Cost Mortgages: When you apply for a mortgage and to buy a property, there are certain initial costs that are, on the whole, unavoidable.
What if I have mortgage arrears?: If you have mortgage payments that have not been made by the due date in accordance with the mortgage deeds, you will have gained a bad credit history on your credit report. This may hinder you when trying to obtain further credit such as a credit card, loan, or another mortgage.

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.

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