When a lender intends to charge a redemption fee, which documents must be provided to the borrower?

• A. A copy of the loan offer.
• B. A worked example of the redemption charge and details on how it is calculated.
• C. A copy of the loan offer and a worked example.
• D. All of the above.

Answer: (B)

When a lender plans to charge a redemption fee, you need to see exactly how that charge is calculated. A worked example lays out the precise scenario—outstanding balance, remaining term, and how the fee is derived from the specific formula or percentage—so you can understand the real cost of paying off the loan early. This transparency lets you compare offers and predict how much you’d owe if you refinance or repay ahead of schedule.

The essential element here is the calculation detail and the example showing how the charge would apply, not just a generic loan offer. That’s why the best choice is the worked example with details on how it is calculated.