The Mortgage Charter

[Eirikur]

2 more months to go on my 1.61% mortgage, will be a shock come September.

[vetran]

not bad, possibly a low rate guarantee would be nice i.e. they are charging 8% and the base rate drops below 1% then you can exit your fixed rate.

[Martin@AS Financial]

Key points:

• Anyone worried about their mortgage repayments can call their lender for information and support, without any impact on their credit score and we (the government) 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 permitting 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 another affordability check.
• Providing well-timed information to help customers plan ahead should their current rate be due to end.
• Offer tailored support for anyone struggling and deploy highly 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 temporary payment deferral or part interest-part repayment. The right option will depend on the customer’s circumstances.

Full report here:

https://assets.publishing.service.go...ge_Charter.pdf