More support and flexibility for mortgage holders
You may have seen that a number of lenders have signed up to the Government's recently created Mortgage Charter (Mortgage Charter - GOV.UK (www.gov.uk), which provides further support and flexibility to residential mortgage customers. These are:
- Anyone worried about their mortgage repayments can call their lender for information and support, without any impact on their credit score. We would encourage you to contact your bank who are there to help.
- Customers won’t be forced to have their homes repossessed within 12 months from their first missed payment.
- Customers approaching the end of a fixed rate deal will be offered the chance to lock in a deal up to six months ahead. They will also be able to apply for a better deal right up until their new term starts, if one is available.
- A new agreement between lenders, the FCA and the government allows customers to switch to an interest-only mortgage for six months, or extend their mortgage term to reduce their monthly payments and switch back to their original term within the first six months, if they choose to. Both options can be taken without a new affordability check or affecting their credit score.
- 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 an affordability check.
- Providing timely information to help customers plan ahead should their current rate be due to end.
- Offer tailored support for anyone struggling and use trained staff to help customers. This could mean extending their term to reduce their payments, offering a switch to interest only payments, but also a range of other options like a payment holiday or part interest-part repayment. The right option will depend on the customer’s circumstances.
Remember, our team of financial advisers are available to provide guidance tailored to your specific needs and circumstances.
If you would like to discuss your financial situation further, please do not hesitate to get in touch.
SPEAK TO AN ADVISER
Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. You may be charged a fee for mortgage advice.
Related
If you've ever dreamed of owning a home but felt priced out of the market, new data from Nationw...
Read More >
After some turbulent years, the UK mortgage market is showing signs of maturity and resilience. For ...
Read More >
Your mortgage questions answered: A friendly guide from your mortgage broker, in plain English.
Read More >
The UK housing market is showing some fascinating twists as we move into 2026, with certain towns an...
Read More >
It’s a busy time for changes in the mortgage world. Are you up to date? We are seeing lots of excit...
Read More >
We read something shocking recently. Recent figures show that around 40% of UK adults have less than...
Read More >