What is the mortgage charter, and what does it mean to you?

 

With the cost of living having an impact on us all in 2023, with the cost of fuel, food and borrowing increasing the Government have stepped in and introduced the ‘Mortgage Charter’. But what is the ‘Mortgage Charter’? 

 

The Mortgage Charter has been introduced this summer (2023) to ease the pressures that rising inflation and the cost of livings effect on residential mortgage borrowers. The charter intends to provide short term reprieve for borrowers whilst the Government tackle inflation. 

 

Lenders can opt into the Mortgage Charter to support their customers. Borrowers who are concerned by their mrotgage payments or future mortgage payemnts can contact their lender directly for support. There is no impact on your credit file for doing so. The new rules include: 

 

• Borrowers will not be forced from their homes without consent within 1 year of a missed payment. 

• Borrowers can secure a new deal within 6 months of their current deal coming to an end, when previously some lenders only allowed you to do this 3 months prior. This increases the window of opportunity to secure an interest rate before rates increase again and to give lenders peace of mind that your deal is sorted well in advance. 

• Borrowers can extend their mortgage term to help reduce their monthly payments. 

• Borrowers who are up to date with their payments can switch to interest only for a period of 6 months. 

These measures can be implemented without the need for affordability checks or credit checks. If you are in arrears with your mortgage, you can still work with your lender but the changes available to you are at the lender’s discretion. 

 

These measures or only available to residential mortgage borrowers, not Buy to Let borrowers. 

 

Most lenders have already signed up to the charter, of those lenders who have signed up they represent 90% of the mortgage marker. Below is the list of lenders who have signed up, you can check below to see if your lender has signed up: 

 

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 

 

Dudley 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 

 

OSB Group, including Precise Mortgages and Kent Reliance 

 

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 

 

If you need any support with your mortgage please get in touch and we will happily assist you. 

 

01482 205084 

Info@greenandgreen.net