Charles Roe
Director of Mortgages, UK Finance
Mortgage lenders are ready to help their customers who are worried about paying their mortgage — all you have to do is reach out. Reaching out won’t affect your credit score.
Higher interest rates mean that many mortgage customers, particularly those coming to the end of their fixed-term deals, may face a considerable rise in their monthly repayments. In response, many banks and lenders in the UK have signed up to the Government’s ‘Mortgage Charter’ to give borrowers reassurance and support through potentially challenging times.
Contact your mortgage lender as soon as possible
The sooner you get in touch with your lender, the better. Don’t wait until you have missed a payment, they are ready to help even if you are up to date with your payments. The earlier you contact your lender, the more options they will have available and the sooner they will be able to help.
Lenders have trained staff who can help you consider the different options and find one that is right for your specific circumstances.
The earlier you contact your lender, the more
options they will have available and the
sooner they will be able to help.
What can my lender do to help me?
Lenders can offer a wide range of tailored support depending on your circumstances. This could include extending your mortgage term to reduce your payments, a temporary switch to interest-only payments or a range of other options like a short-term payment deferral or reduced monthly payments for a period.
Am I eligible for help under the Mortgage Charter?
Signatories to the Mortgage Charter have agreed that customers who are up to date with their payments can:
- Switch to interest-only payments for six months
- Extend their mortgage term to reduce their monthly payments and have the choice to revert to their original term within 6 months by contacting their lender
In addition, lenders signed up to the Charter have committed that:
- 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 also be able to manage their new deal and request a better like-for-like deal with their lender — if one is available — up to a few weeks before their new term starts.
- A borrower will not be forced to leave their home without their consent unless in exceptional circumstances, within 12 months of their first missed mortgage payment.
You can find out more information about UK Finance’s Reach Out campaign and details on how to contact your lender at ukfinance.org.uk/reachout
