Chancellor Jeremy Hunt, along with principal mortgage lenders and the FCA, has introduced a ‘New Mortgage Charter’ offering support to homeowners as interest rates rise.
Key details about the Mortgage Charter
- Anyone worried about their mortgage repayments can call their lender for information and support, without any impact on their credit score and we would encourage you to contact your bank who are there to help.
- Homeowners won’t be forced to have their homes repossessed within 12 months from their first missed payment.
- Homeowners 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.
- Support for homeowners 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.
- A new agreement permitting homeowners 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.
- Offer tailored support for anyone struggling and deploy highly trained staff to help homeowners. 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 homeowner’s circumstances.
This move will bring much-needed comfort to homeowners concerned about high interest rates and support those in difficulty.
Feel free to reach out!
Full information here: Mortgage Charter
