If you have taken out a mortgage which has an introductory period with an early redemption penalty attached, this can seriously add to the cost of paying off your mortgage within the specified time. If you have taken out a mortgage with an early redemption period of five years and you choose to move lenders within those five years, you will be charged the penalty. This may be waived if you remortgage with the same lender.

The fee can be for a fixed amount, but it is more common for it to be a proportion of the money you borrowed. The cost can run into thousands of pounds, which will be added to the outstanding amount when you ask for a redemption statement.