The Mortgage Charter: Helping Homeowners Through Rising Interest Rates

The Mortgage Charter is a new initiative by the UK government and the financial industry to help homeowners who are struggling with rising interest rates. The charter sets out a series of commitments that lenders will make to their customers, including:

  • Allowing borrowers to contact their lender for help without impacting their credit file.
  • Enabling borrowers who are up to date with payments to switch to a new mortgage when their fixed term ends without another affordability check.
  • Providing more tailored support for borrowers who are at risk of falling behind on their payments.

The Mortgage Charter has been signed by 32 lenders, representing around 85% of the UK mortgage market. This means that millions of homeowners will be able to benefit from the new measures. 1.4 million mortgage borrowers in the UK finish their current fixed rate products this year, likely seeing higher rates.

If you are a homeowner who is struggling with rising interest rates, you should contact your lender to see how the Mortgage Charter can help you. You can find more information about the charter on the government’s website.

Here are some of the lenders that have signed up to the Mortgage Charter:

  • Barclays
  • NatWest
  • Lloyds
  • Nationwide
  • HSBC
  • Santander
  • Virgin Money
  • TSB
  • Scottish Building Society
  • Buckinghamshire Building Society

Here are some of the benefits of the Mortgage Charter:

  • It can help you to avoid falling behind on your mortgage payments.
  • It can help you to switch to a more affordable mortgage.
  • It can provide you with more tailored support if you are struggling to make your payments.

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

If you are a homeowner who is struggling with rising interest rates, I encourage you to contact your mortgage adviser to see how the Mortgage Charter can help you. We are here to talk.

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