You may have heard about the new Mortgage Charter that has been introduced by the Government to support mortgage borrowers, but what is it and how can it help you?
What is the Mortgage Charter?
The Charter is a set of standards that are in place for when helping mortgage customers who are worried about the high rates. These standards are a commitment to offer support and have been agreed by the UK’s largest mortgage lenders and the industry regulator: the Financial Conduct Authority (FCA).
You can view the Charter and a full list of the lenders who have signed up to it here.
What does it mean for you?
Lenders typically have their own measures in place to support customers struggling to pay their mortgage, but this Charter creates a clearer and more consistent approach for mortgage borrowers.
All mortgage borrowers, who are up-to-date with their payments but struggling, now have these opportunities:
- Switching their mortgage to interest-only for six months
- Extending their mortgage term and having the option to switch back to the original term within six months
These solutions lower repayments without affecting credit scores or requiring new affordability checks. In addition, lenders have agreed to not action repossessions within a year of first missed payments.
How can you get help?
It’s an uncertain time and worrying for many, but help is available. If you’d like us to review your mortgage and see which option best suits your circumstances, please get in touch by calling 01925 357 060, or visit click here to contact your dedicated Mortgage Advisor from our team.