A 'No redemption' option means that the mortgage scheme will allow you to repay the loan in full at any time without applying an Early Redemption Charge.

Most mortgage schemes, in return for offering you a lower initial rate, will require you to stay with that scheme at least for the period of the Discount, Fix or Cap, and often longer.

If you wish to repay the loan in this time, or you remortgage with another lender, you will have to pay an Early Redemption Charge which can cost thousands of pounds (6 months interest is common) depending on the lender and scheme.

With 'No Redemption' mortgages you will not have to pay this redemption fee (although there may still be other costs such as sealing fees and legal fees).

As a consequence of not being 'locked-in', the rate offered on these schemes will usually not be as competitive as for mortgages with redemption penalties, making them most suitable for those who are likely to keep track of current rates and wish to remortgage quickly if they find a better rate, or those who may have to repay their loan in the first few years.

For more information about No Redemption, contact one of our independent advisers.