Homeowner Loans and Mortgage Redemtion

Any potential pitfalls when it comes to mortgage redemption?

The answer yes, there could well be some things to consider.

It all depends on the terms of the mortgage you are looking to redeem.

If you have some form of  lock-in clause, perhaps because you originally had a fixed or discount rate, then you will usually have to pay some kind of penalty often known as an ERC or Early Repayment Charge

Mortgage Redemption Fees

Paying off  your mortgage altogether sometimes incurs a  charge, which is also known as a "deeds fee", "exit fee", "sealing fee" or "discharge fee". This is to all intents and purposes is an administrative charge. This has come in for some criticism.

Mortgage lenders are continually reducing their margins on interest rates, some are seeking other areas in which they can recoup some form of additional income, especially if they propose taking their business elsewhere.