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Extended redemption penalty |
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Extended redemption penaltyThis is where the redemption penalty continues beyond a fixed or capped rate period, effectively tying you in to the much higher variable rate for a period of time after the fixed or capped period. As a result you get stuck paying an uncompetitive rate that eats into the gains you may have made from having the fixed rate or capped ratein the first place.Extended redemption penalty Similar MatchesRedemption penaltiesRedemption penaltiesCharges paid to the lender in compensation for lost interest if you redeem your mortgage ahead of schedule. During a discount period you will be severely penalised if you try to switch to another product or mortgage provider. Penalties can be stepped just like discounts, and can be particularly severe within the first year. This is to ensure that the costs that the lender endures in setting up the mortgage are always covered. Penalties can be a fixed sum of money, though are often proportion of the loan. With cashback mortgages, you often have to repay the amount of money you received as cashback. Redemption priceRedemption priceThe price at which a bond or preferred stock can be redeemed by the issuer. Redemption priceRedemption priceSee: Call price Gross redemption yieldGross redemption yieldSee 'redemption yield'. Redemption penalty overhangRedemption penalty overhangThis is where the redemption penalty continues beyond a fixed or capped rate period, effectively tying you in to the much higher variable rate for a period of time after the fixed or capped period. As a result you get stuck paying an uncompetitive rate that eats into the gains you may have made from having the fixed rate or capped ratein the first place. Further Suggestionsright of redemptionredemption yield Redemption Redemption Period redemption date redemption Preferred equity redemption stock (PERC) Redemption fee Redemption statement redemption fees Redemption Redemption date Mandatory redemption schedule Overhanging redemption penalty Redemption Serial redemption Redemption charge Redemption cushion Right of redemption |
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