What is the mortgage charter, and what does it mean to you?
Posted on 21st August 2023 at 11:10
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:
Bank of Ireland UK
Bath Building Society
Buckinghamshire Building Society
The Co-operative Bank, including Platform and Britannia
Coventry Building Society
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
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
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.
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