Gross redemption yield
Gross redemption yieldSee 'redemption yield'.
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.
Redemption dateRedemption date
The date on which a bond matures or is redeemed.
Redemption penalty overhangRedemption penalty overhang
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.
Right of redemptionRight of redemption
The right to recover property forfeited by foreclosure by paying the outstanding principal owed plus interest.
The process of canceling a defeasable title to land, such as is created by a mortgage foreclosure or tax sale.
Right of redemption
Mandatory redemption schedule
Overhanging redemption penalty
Extended redemption penalty
Preferred equity redemption stock (PERC)