At the end of June 2023, HM Treasury published their Mortgage Charter. It set out the commitments mortgage lenders have made to residential mortgage holders.

The Government aims to halve inflation by the end of the year, but for now, high inflation rates are an immediate concern for many mortgage holders, particularly those about to come off fixed rate deals.

The Charter sets out that :

  • Customers can contact lenders for help without impacting their credit file
  • Customers on fixed rate mortgage deals due to end that are up to date with their payments can switch to a new deal without another affordability check
  • Information on available mortgage deals will be given to customers in time to plan ahead
  • Tailored support will be available, including extending mortgage term, interest only payments, temporary payment deferral or part interest – part repayment

Signatories to the Charter agree that:

  • From 26 June no customer will be forced to leave their home in less than a year from their first missed payment – unless there are exceptional circumstances
  • From 10 July customers approaching the end of a fixed rate deal will have the chance to lock in a deal up to six months ahead. They will be able to request a better like for like deal with their lender right up until their new term starts, if one is available
  • Customers who are up to date with their payments can
    • switch to interest-only payments for six months or
    • extend their mortgage term to reduce monthly payments and have the option to revert to their original term within 6 months by contacting their lender

To date, lenders that represent approximately 90% of the mortgage market have signed up to the Charter.