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Private Label attacks lenders who don&#39t offer redemption penalties for cheating consumers

Private Label is attacking lenders that offer redemption-free products because it says they cheat the consumer.


The mortgage packager says that instead of offering a redemption penalty option many lenders load the potential cost into the mortgage rate. The result is that the borrower has no choice but to pay the cost leaving them in a worse position.


Executive chairman Steven Knight says: &#34The redemption charge that would otherwise be payable is loaded into the rate with redemption-free deals.


&#34This means instead of possibly paying a redemption charge these applicants are definitely paying one via the loading.&#34

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