The Government’s Mortgage Charter – support with rising interest rates

The Government recently launched their Mortgage Charter following a meeting of the UK’s largest mortgage lenders, UK Finance and the Financial Conduct Authority (FCA).  A copy of the Mortgage Charter can be found at https://www.gov.uk/government/publications/mortgage-charter/mortgage-charter.

We’re giving our full support to the Mortgage Charter and here are some ways we can help our residential mortgage borrowers:

• Allowing you to switch to an interest-only mortgage for 6 months without the need for a new affordability check and without it affecting your credit file. Temporary Interest Only Frequently Asked Questions
• Allowing you to extend your mortgage term to reduce your mortgage payments without the need for a new affordability check and without it affecting your credit score. Term Extension Frequently Asked Questions
• You are able to switch back to your old term within the 6 month period without any further affordability checks, however this is not compulsory
• Not repossessing your home within 12 months from your first missed payment

Whilst we fully support the Mortgage Charter, there are already plenty of ways we can help. You can:

• Talk to us about your circumstances without it having any adverse effect on your credit score
• Arrange a new mortgage deal up to 4 months prior to the end of your current deal with no affordability checks if your payments are up to date*
• Obtain information on the products available to you to help you to plan for when your existing mortgage deal comes to an end
• Obtain tailored support from our highly trained and friendly colleagues if you are struggling to make your mortgage payments

*If you switch to a new deal without seeking advice, you will not benefit from the protection given under the Financial Conduct Authority’s rules on assessing suitability so, if your circumstances have changed (such as a change to your income), then please seek advice from one of our qualified mortgage advisers.

Please note that the options available under the Government’s Mortgage Charter are not available to borrowers who are already in arrears, or those borrowers with a Buy to Let mortgage.

However, here at The Mansfield, we have a wide range of options available for any borrower worried about making their mortgage payments either now or in future.  As a flexible lender, we take pride in offering a personal approach to borrowers, including those concerned about being able to make their mortgage payments.

If you are worried about making your mortgage payments, please speak to us as soon as possible so that we can find the right solution for you before your financial circumstances become more serious.

Further details on how we can help and how to contact us are available online at mansfieldbs.co.uk/worried-you-cant-make-your-mortgage-payments and you can call our Mortgage Customer Services team on 01623 676340.

Updated: 02.08.23