The Mortgage Charter

We can assist you with Residential Mortgages and Buy to Lets

Introduction

With current mortgage interest rates being high, this is a concerning time for mortgage
holders, especially those who are due to come to the end of their existing deal. Due to the
current pressures on households to meet their rising mortgage commitments most of the
residential mortgage lenders have agreed to new commitments to support borrowers to
help them through this difficult period.

It must be emphasised that if mortgage borrowers are able to meet their new payments
they should continue to do so. This is always the best course of action and will always mean
you pay less interest overall.

It is also important that you speak to a mortgage broker first before doing anything. Your
broker will have a clear overview of the mortgage market and is best positioned to give
you impartial advice and provide you with the best options available to you.

The Charter

The UK’s largest mortgage lenders and the Financial Conduct Authority (FCA) have agreed
with the Chancellor a set of standards that they will adopt when helping their regulated
residential mortgage borrowers worried about higher rates. Please note this does not apply
to Buy to Let mortgages.

Signatories to this Charter have agreed:

  • From 26th June 2023, a borrower will not be forced to leave their home without
    their consent unless in exceptional circumstances, in less than a year from their
    first missed payment.
  • With effect from 10th July 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 change to a better like for like deal with their lender
    right up until their new term starts, if one is available.

Customers who are up to date with their payments to can:

  • Switch to interest-only payments for six months or
  • extend their mortgage term to reduce their monthly payments and
    give customers the option to revert to their original term within 6
    months.
  • Please note by doing either of these you will be paying more in interest
    in the long term. You should look at this option only if it’s necessary.
    Once again you should speak to a mortgage broker before doing this.

Participating Lenders

  • AIB Group (UK) plc, including AIB (NI) and Allied Irish Bank (GB)
  • 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
  • Mansfield 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 plc, trading as Precise Mortgages and Kent Reliance
  • Principality Building Society
  • Progressive Building Society
  • Santander
  • Scottish Building Society
  • Skipton Building Society
  • Spring Financial Group Limited, including MPowered Mortgages
  • 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 Societ

These lenders represent approximately 90% of the mortgage market.

Other lenders will continue to provide tailored support to vulnerable borrowers, including
options that may be similar to the flexibilities permitted under this Charter. Any borrower
who is concerned about their mortgage repayments with lenders who have not signed up to
this Charter should contact their lender or visit their website to see what support may be
available.
At Absolutely Mortgages we are best positioned to help you on this matter. We have many
years of experience helping first time buyers, home movers and those looking to
remortgage. We are an Epsom based family business with strong ties to the local area and
our market knowledge is second to none.

Please get in touch with us on 020 8393 9222. Or email
enquiries@absolutelymortgages.co.uk