Early Repayment Charge Overhang
Sometimes, a lender may have an introductory rate that is perhaps especially attractive.
However, “there is no such thing as a free lunch” and such a rate would very often have an early repayment charge (also known as an early redemption penalty) going on beyond the end of the introductory rate.
Generally speaking, the more attractive the introductory rate, the greater and longer-lasting, is the early repayment charge overhang.
