Early repayment charges

If you repay your mortgage at any time before the end of the mortgage term you may have to pay certain fees or an interest penalty. This penalty often decreases with time. An extended redemption tie-in means that this penalty will continue after the initial term of the mortgage.

Mortgage portability

This means the mortgage can be kept with the same lender when you move house.

Mortgage overpayments

This is when monthly repayments to a mortgage can be increased. This means the mortgage is repaid early, which will save you money on interest.

Mortgage related insurance

Lenders insist that the property is insured with a buildings insurance policy, covering against the usual risks. In addition to this you will need contents insurance to cover things such as theft, fire and damage. Another form of insurance is a mortgage payment protection plan that gives income protection against unemployment, sickness and redundancy.

Life assurance

It is a good idea for life assurance to be taken out to cover the value of the mortgage, allowing the mortgage to be repaid should you die.