What is the Mortgage Charter?

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. 

What have we committed to?

In signing the Mortgage Charter, we have agreed:

  • Anyone worried about their mortgage repayments can contact us for help & guidance, without any impact on their credit file.
  • Support for customers who are up-to-date with payments to switch to a new mortgage deal at the end of their existing fixed rate deal without another affordability check.
  • To provide well-timed information to help customers plan ahead should their current rate be due to end.
  • To offer tailored support for anyone struggling and deploy highly trained staff to help customers, with a range of options available. Customers who are currently in arrears should continue to work with us for the support that they need.
  • From 26 June, Customers 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. This is not applicable to customers who own Buy to Let properties.
  • Customers approaching the end of a fixed rate deal will have the chance to lock in a new 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.
  • Customers who are up to date with their payments 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 by contacting their lender

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.

Are these options right for me?

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. 

For more information on the options available, please visit our switching to interest-only payments or extending mortgage terms webpages.

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 

Platform & Mortgage Agency Service mortgage holders – 0333 321 5965

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