Firstly, you may want to talk to your mortgage broker if you have concerns about your mortgage. They might be able to offer you advice before you talk to your mortgage lender. However, if you are immediately struggling your lender could be your best option.
Whilst some of the Mortgage Charter isn’t new in terms of help it offers, there are additions which are very much welcomed.
You can speak to Clever Mortgages on 0800 197 0504 if you need mortgage advice.
The UK’s largest mortgage lenders and the Financial Conduct Authority (FCA – who regulated mortgages) have agreed with the Chancellor a set of standards that they will adopt when helping their regulated residential mortgage borrowers worried about higher rates. This does not apply to Buy to Let mortgages.
What have they agreed?
All lenders signed up to the Mortgage Charter have agreed:
- Anyone worried about their mortgage repayments can contact their lender for help and guidance, without any impact on their credit file.
- Support for customers who are up-to-date with payments to switch to a new mortgage deal at the end of their existing fixed rate deal without another affordability check.
- Lenders will provide well-timed information to help customers plan ahead should their current rate be due to end.
- Lenders will offer tailored support for anyone struggling.
- This could mean:
- Extending their term to reduce their payments
- Offering a switch to interest only payments for six months
- Temporary payment deferral
- Part interest-part repayment
- The right option will depend on the customer’s circumstances.
- From 10th July 2023 customers approaching the end of a fixed rate deal will have the chance to lock in a deal up to six months ahead. They will also be able to manage their new deal and request a better like for like deal with their lender right up until their new term starts, if one is available.
- This could mean:
These options can be taken by customers who are up to date with their payments without a new affordability check or affecting their credit score. Customers who are currently in arrears should continue to work with their lender for the support that they need.
Lenders who have signed up to this Charter
(These lenders represent approximately over 90% of the mortgage market).
Bank of Ireland UK
Bath Building Society
Buckinghamshire Building Society
The Co-operative Bank, including Platform and Britannia
Coventry Building Society
Darlington Building Society
Earl Shilton Building Society
Ecology Building Society
Family Building Society
Furness Building Society
Glasgow Credit Union
Hinckley & Rugby Building Society
HSBC, including First Direct
Kensington Mortgage Company
Leeds Building Society
Leek Building Society
Lloyds, including Halifax and Scottish Widows
Loughborough Building Society
Melton Mowbray Building Society
Monmouthshire Building Society
Nationwide Building Society
Natwest, including RBS and Ulster Bank
Newbury Building Society
Newcastle Building Society
Nottingham Building Society
Principality Building Society
Progressive Building Society
Scottish Building Society
Skipton Building Society
Suffolk Building Society
Teachers Building Society
Tipton & Coseley Building Society
TSB, including Whistletree
The Vernon Building Society
United Trust Bank Limited
Virgin Money, including Clydesdale Bank and Yorkshire Bank
West Bromwich Building Society
Yorkshire Building Society