Gross redemption yield
Gross redemption yieldSee 'redemption yield'.
Redemption statementRedemption statement
The outstanding amount to be repaid on an existing mortgage. Redundancy insurance Another form of income protection, but one that does not cover any form of sickness, injury or disability. The purpose of this type of policy is to replace income lost through a short to medium term period of redundancy. It provides you with a monthly tax-free income to cover a portion of your lost earnings. It is often sold in conjunction with the accident, sickness and disability element of income protection policies, in which case it is known as Accident, Sickness and Unemployment (ASU).
Redemption dateRedemption date
The actual date on which repayment of a bond or loan stock takes place.
Right of redemptionRight of redemption
The right to recover property that has been attached by paying off the debt .
Redemption penaltiesRedemption 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.
Preferred equity redemption stock (PERC)Preferred equity redemption stock (PERC)
Preferred stock that converts automatically into equity at a stated date. A limit is placed on the value of the shares the investor receives.
Further SuggestionsRedemption Period
Redemption penalty overhang
Extended redemption penalty
Mandatory redemption schedule
Overhanging redemption penalty
right of redemption