The UK’s largest mortgage lenders and the Financial Conduct Authority have agreed a new set of standards that they will adhere to when helping residential mortgage borrowers struggling to cope with higher rates.

Amoung the standards agreed to are provisions that;

• Borrowers will not be forced to leave their home without their consent less than a year from their first missed payment.
• Borrowers who are up-to-date with payments can switch to a new mortgage deal at the end of their fixed rate without undergoing another affordability check.
• Borrowers nearing 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 right up until their new term starts, if one is available.

Additionally;

• Customers who are up-to-date with their payments can also
  • switch to interest-only payments for six months or
  • extend their mortgage term to lower their monthly payments without a new affordability check or affecting their credit score.

The “mortgage charter” is designed to support and reassure mortgage holders during periods of rising interest rates and ensure as many people can stay in their homes as possible

For full details of the provisions, and to see which lenders have signed the charter, see our article the Mortgage Charter.