Financial Times FT.com

EARLY REDEMPTIONS

By Charles Batchelor

Published: September 16 2006 03:00 | Last updated: September 16 2006 03:00

When you take out a personal loan or a mortgage, early redemption charges are a common feature of many deals.

At a time of growing concern about levels of personal debt, it seems perverse that lenders should penalise customers who want to reduce their outgoings. Of course, the individual lender is less concerned with the public good than with retaining the borrower as a customer. But this does not make the practice any more palatable.

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