We don't like sneaky tie-ins

We don't like deals with sneaky tie-ins. Many borrowers have now learnt to look out for extended redemption penalties on mortgage deals, but there are some deals that can easily catch the unwary.

These are deals that offer a competitive fix or discount for the first few years, followed by a meagre discount off the lender's Standard Variable Rate (SVR) for the next few years. But the catch is that they charge an early redemption penalty for the whole period.

This can be equal to three to six months' mortgage payments, so the penalty can be particularly painful for anyone with a large mortgage.

The discount for the better period is so small that the pay rate is totally uncompetitive for a discount product.