Getting a Fair Deal on a Mortgage

6. Are there any redemption penalties?

• What will I have to pay if I want to switch to a mortgage offering a better deal?
• • (If you are given a formula) What will the actual cost be?
• What will I have to pay if I want to switch to a mortgage offering a better deal?

You may wish to pay off the loan early, for example if another lender is offering a better deal. Ask whether there are any penalties, how long they apply for (for example how many years once a low start up rate of interest ends) and what the actual cost would be for you (don't accept a formula). Ask the lender whether it will let you switch to one of its other deals without penalty, once your initial special deal period ends.