Extended redemption penalty

 

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Extended redemption penalty

This 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 Matches

Redemption fee

Redemption fee

A fee some mutual funds charge when an investor sells shares within a specified short period of time.


Redemption date

Redemption date

The actual date on which repayment of a bond or loan stock takes place.


Redemption fees

Redemption fees

Fees imposed by a mutual fund on shareholders who dispose of shares within a relatively short period after purchase.


Redemption penalties

Redemption penalties

Charges 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

Redemption

This is the right of the mortgagor to recover mortgaged property on repayment of the loan and any interest due. This legally means that once you as the borrower have finished repaying the mortgage you took out, the property is yours and the lender has no further claim on it. If you pay of the mortgage ahead of schedule you may face a redemption penalty which compensates the lender for loss of interest.


Further Suggestions

Redemption penalty overhang
Redemption date
Redemption charge
redemption price
Redemption price
Preferred equity redemption stock (PERC)
redemption
Redemption Period
Right of redemption
Redemption statement
redemption yield
gross redemption yield
Serial redemption
Redemption
Redemption cushion
Redemption
Mandatory redemption schedule
Overhanging redemption penalty
right of redemption


 
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