10 July 2023
3 min read
On 23 June 2023, the Chancellor announced a new Mortgage Charter, following a meeting with the UK's principal mortgage lenders and the Financial Conduct Authority (FCA). Many mortgage lenders, including The Co-operative Bank, have signed and agreed to the commitments outlined in the Charter. Customers can now apply to switch to interest-only or have their existing mortgage term extended below.
In signing the Mortgage Charter, we have agreed:
Customer can, if they wish, apply again after 6 months for the option they have not yet selected. For example, a customer applies for interest only and after 6 months can then extend their term also.
These options are available to residential customers who have not already missed a payment without the need for a new affordability check or affecting their credit score.
Some measures within the Mortgage Charter have been introduced to enable lenders to offer flexible, short-term support if you're struggling with your current mortgage repayments or worried about how you'll meet future mortgage repayments once your existing deal ends.
Moving to interest-only payments or extending your mortgage term will make your mortgage more expensive in the long-run.
In the meantime, we already offer a range of support for our customers who are struggling to meet mortgage payments, and would advise you to get in touch with us to discuss the help available as soon as you anticipate any difficulty in making your mortgage payments. Please do not wait, speaking to us will not affect your credit rating.
For more information on the help available, please visit: Paying your mortgage | The Co-operative Bank
Get in touch with us
If you are struggling, please get in touch with us to see how we can help by calling:
Co-operative Bank & Britannia mortgage holders – 08000 288 288
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