In the face of economic uncertainties and the commitment to halving inflation, the UK government has introduced the Mortgage Charter, a set of standards agreed upon by the country's largest mortgage lenders and the Financial Conduct Authority (which regulates mortgages).
The charter aims to provide clarity and assurance to mortgage borrowers who may be concerned about the potential impact of higher rates on their financial situations. But how exactly? Let’s take a look.
In an attempt to address the root causes of inflation and ensure the stability of the economy, the chancellor convened a meeting with major mortgage lenders, UK Finance, and the FCA in June, during which new commitments were established to support borrowers in these challenging times, particularly those approaching the end of their existing deals.
The resulting Mortgage Charter outlines several key commitments aimed at providing support and reassurance to mortgage holders. These commitments include:
Lenders who have signed up to this charter include Barclays Bank, HSBC, Lloyds, Nationwide, Natwest, Santander, TSB and the Yorkshire Building Society. You can see the full list here. The list represents around 90% of the mortgage market.
You might have already received a letter from your lender offering support and outlining the above - this is the Mortgage Charter in action.
The Mortgage Charter is designed to support people who are struggling with their mortgage repayments, particularly those worried about the impact of an increase in monthly payments when their existing fixed-rate deal ends.
But if you can continue making your monthly mortgage repayments as usual, this is probably the best option for you. This is because by doing this, you’ll pay less money back to your lender overall.
If you’d like to discuss your options, please contact your lender or speak to us. We’re always here for you.
You can book an online meeting with one of our advisers at your convenience here.