Are there any downsides to adverse credit mortgages?

There are no real downsides but you would usually find that interest rates are higher than those of high-street lenders. The higher interest rate reflects the increased risk taken by the lender in lending to someone who has had previous financial problems.

Redemption penalties do exist obviously exist but they are coming more into line with other products and are becoming less of an issue. Many lenders are offering fixed rates that are only marginally higher than high-street prices.