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Penalty clause |
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Penalty clauseA clause found in contract agreements that provides for a penalty in the event of default.Penalty clause Similar MatchesMarriage penaltyMarriage penaltyA tax that has the effect of penalizing a married couple because they pay more tax on a joint tax return than they would if they file tax returns individually. Prepayment penaltyPrepayment penaltyLenders can impose a penalty on a borrower who pays a loan off before its expected end date. 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. Prepayment penaltyPrepayment penaltyA fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. Extended redemption penaltyExtended 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. Further SuggestionsPenalty taxEarly withdrawal penalty Overhanging redemption penalty early withdrawal penalty |
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