Return to the Mortgage Glossary Home to view explanations for all mortgage terms. What follows is the definition for the term Early Redemption Charge as it relates to mortgages in the UK. Early Redemption Charge Sometimes referred to as a redemption penalty. Often mortgages are sold as "loss leaders" where the initial incentives are so good that the lender has to tie the borrower to the bank or building society with early redemption penalties, these can be for as long as the discount or fixed rate lasts and in some cases can extend past the initial offer stage.     Previous 10 terms < Draw Down Facility < Discounted Mortgages < Deferred Interest Mortgage < Default < Credit File < County Court Judgements < Conveyancing Fee < Conveyancing < Contract Race < Conditional Insurances Next 10 terms Endowment Mortgages  > Equity  > Essential Repairs  > Exchange of Contracts  > Existing Liabilities  > First Time Buyer  > Fixed Rate Mortgages  > Flexible Mortgage  > Flying Freehold  > Foreign Currency Mortgage  >