A redemption figure is the exact amount required to repay a mortgage in full on a specific date. It includes the outstanding capital balance, accrued interest to that date, and any applicable early repayment charges.
When you need a redemption figure
Home movers: When you sell your current home, your solicitor requests a redemption figure from your mortgage lender. On completion day, the funds from your sale are used to repay this amount before the remainder is applied to your new purchase.
Remortgagers: When you switch to a new mortgage, the new lender pays out the old one. A redemption figure tells the new lender exactly what to pay.
Early repayment: If you want to make an overpayment or repay your mortgage early, you need a redemption figure to know the exact amount due.
What it includes
- The outstanding capital balance
- Interest accrued from the last payment date to the redemption date
- Any early repayment charge (ERC)
- An admin fee (sometimes)
Early repayment charges (ERCs)
Most fixed-rate and tracker mortgages carry an early repayment charge if you repay more than an agreed overpayment allowance or repay in full before the fixed period ends. ERCs are typically 1–5% of the outstanding balance, reducing each year of the fixed term.
A redemption figure quotes the ERC for a specific date. It's usually valid for 30 days. If you need it for a different date, request a new one.
This glossary entry is for general information. Always consult a qualified mortgage adviser for advice specific to your circumstances.