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: "The redemption charge that would otherwise be payable is loaded into the rate with redemption-free deals.
"This means instead of possibly paying a redemption charge these applicants are definitely paying one via the loading."