UK Mortgage Lenders and UK Government have teamed-up to create The Mortgage Charter, please see below how The Mortgage Charter can support you:
1. Seamless Mortgage Deal Switching:
You can now switch to a new mortgage deal with your existing lender without undergoing an affordability check. This streamlines the process, making it hassle-free and time-efficient. However, it’s important to note that if you decide to switch to another lender, they will still conduct their own affordability assessment.
2. Rate Lock-In:
Enjoy peace of mind with the ability to secure a new mortgage rate up to 6 months before your current one expires. This new rate will be locked in, regardless of any market fluctuations during that period. Moreover, if you come across a more favourable deal elsewhere, you have the flexibility to cancel the application and opt for the better offer. Simply inform your lender or broker on or before the 20th of the month preceding your new rate’s commencement.
3. Flexible Mortgage Term Extension:
To reduce your monthly payments and gain some financial breathing space, you can opt to extend the length of your mortgage term. Although this may result in higher overall interest payments, it can be a valuable option during challenging times.
4. Interest-Only Payment Option:
For a temporary period of 6 months, you can switch to interest-only payments. This means you will only pay the interest on your mortgage during this time, keeping your monthly expenses lower. Even if the mortgage rates change during this period, your payments will remain the same.
5. Confidential Help Without Impacting Your Credit Rating:
Worried about reaching out for assistance and how it might affect your credit rating? Worry no more! Speaking directly to your lender, this will not have any adverse impact on your credit rating or show up on your credit file. So, if you are facing financial challenges or anticipate difficulties, don’t hesitate to contact your lender as soon as possible. Mortgage Lenders have teams in place to support you and can offer a variety of options to help you navigate through tough times.
6. Mortgage Payment Grace Period:
In cases of financial hardship, lenders are committed to providing you with some leeway. Even if you are unable to pay your mortgage, rest assured that lenders won’t force anyone to leave their home for at least 12 months after the first missed payment. This policy applies in almost all circumstances, with only a few exceptional cases where repossession may be necessary.
We are dedicated to ensuring your financial well-being and that the Mortgage Charter is in place to support you. Should you require any guidance or assistance, please do not hesitate to reach out, we are offering a Free ‘Financial Health’ check to support our existing and potential new clients. Together, we can find a way through any challenges you may face.
Lenders who have signed up to this Charter
- Aldermore Bank
- Bank of Ireland UK
- Barclays
- Bath Building Society
- Buckinghamshire Building Society
- The Co-operative Bank, including Platform and Britannia
- Coventry Building Society
- Danske Bank
- 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
- Metro Bank
- Monmouthshire Building Society
- Nationwide Building Society
- Natwest, including RBS and Ulster Bank
- Newbury Building Society
- Newcastle Building Society, including Manchester Building Society
- Nottingham Building Society
- Principality Building Society
- Progressive Building Society
- Santander
- 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
These lenders represent approximately 90% of the mortgage market.
