Early Redemption Fees - Cheap Mortgage Deals

This is often associated with fixed, capped or cash-back mortgages although not exclusively. You may have been offered a very good interest rate on your existing mortgage which the lender feels should be enough to tie you in, the lender will want to recoup their original cost of administering your mortgage package.

If you decide to abandon your existing mortgage and take out a new one, the new benefits should be weighed against the redemption or penalty payments to see whether the new product is infact better in the long run.