Mortgage lenders understand that many households are seeing their finances squeezed at this difficult time. That is why the industry has introduced a broad range of measures to support borrowers, including a payment holiday of up to three months, a moratorium on repossessions and a commitment to extend mortgage offers for three months for customers who have already exchanged contracts.

Now, to further support customers, lenders have renewed and expanded a commitment to help existing mortgage customers easily switch to a new deal when they reach the end of their term. Under an industry-wide agreement introduced in 2018 by UK Finance, the Building Societies Association (BSA) and the Intermediary Mortgage Lenders Association (IMLA), any eligible customer coming to the end of a fixed-rate mortgage is routinely offered a product transfer by their lender. This gives customers the option to switch to a new deal with their existing lender instead of automatically moving onto a reversion rate.

Normally customers on payment holidays would not be eligible for a product transfer but given the current exceptional circumstances, lenders are waiving this rule to help borrowers impacted by Covid-19. Existing borrowers who have been furloughed will also be eligible for a product transfer if they meet the criteria.

Product transfers allow borrowers to switch products quickly and efficiently, as they involve less paperwork and tend not to require a new affordability assessment or full physical valuation. The latest UK Finance figures show that almost 1.2 million customers, or around one in eight mortgage borrowers, took advantage of a product transfer to switch deals in 2019. Around one million customers are expected to reach the end of their fixed-rate deal between now and the end of 2020.

To be eligible for a product transfer, customers need to be up to date with payments, approaching the end of their fixed-rate term and not looking to borrow any more. Borrowers also need to have a minimum remaining mortgage term of two years and an outstanding loan of at least £10,000. It's also important to remember that this cross-industry commitment only applies to customers of those lenders that are able to offer alternative products to their existing borrowers.

Eligible customers should be contacted by their lender when the end of their term approaches, so they don't need to do anything for now. For those who want help selecting the right product for them, advice is widely available from both mortgage brokers and lenders. Telephone lines remain extremely busy so customers are encouraged to check their lender's website in the first instance. This will have the latest information on the support available and should answer many queries.

Mortgage payments tend to be the largest outgoing for many households and lenders know they have a critical role to play in providing reassurance and support to customers at this time, including to those facing financial difficulty. This renewed agreement will enable eligible borrowers to opt for the security of fixing their monthly mortgage payments going forward, including those who have been granted a payment holiday or have been furloughed by their employer. This forms part of our clear plan to support homeowners and to help Britain get through these tough times.