Lenders already offer a wide range of tailored forbearance to anyone struggling with their mortgage payments. On top of this, mortgage lenders have now agreed to additional measures to support customers as part of the new mortgage Charter. Details of the commitment can be seen on the government’s website.

The Charter only applies to customers of lenders who have signed up. Support under the Charter is available for first-charge residential mortgage-holders and to borrowers who are up-to-date with their payments. However, there is support available for all mortgage customers from all lenders outside of the new measures announced in the Charter.  If you are concerned about your finances, whether that is now or when you are due to come off your current fixed-rate deal, please contact your lender who will work with you to explore the different options available and find one that is most appropriate for your specific circumstances.

The earlier you contact your lender, the more options they will have available and the sooner they will be able to help. Even if you have missed payments, they will still be able to help you.

Your lender will have a team of individuals who are experienced in dealing with borrowers facing financial difficultly. They will work with you to explore the different options available and find one that is most appropriate for your specific circumstances.

You may, for example, be offered one of the following depending on your circumstances:

• a part payment plan – where you pay a reduced amount covering the interest and some of the loan amount
• a mortgage term extension – where the length of the mortgage is extended to reduce the monthly repayment amount
• a temporary switch to an interest-only mortgage
• a payment concession, including a zero-payment concession, if appropriate

No lender wants to repossess someone’s home, and repossession is only done as either a last resort or when it is in the financial interests of the borrower. For this reason all lenders (including non-signatories) have an extensive range of measures that they use for customers experiencing difficulties.

In addition, from 26 June, borrowers of the Charter signatories 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.

Exceptional circumstances may include:

• when the property is vacant, the customer is deceased or the customer voluntarily seeks to proceed
• where there is detriment to the borrower in remaining in the property
• vulnerabilities such as domestic or financial abuse, threat to life, severe health

Possession will always be a last resort when all other tailored support options have been exhausted.

Lenders are able to issue a formal demand, to make you aware of the money you owe and inform you that the case will go to possession proceedings.  It is important that you get in touch with your lender to discuss your options. Lenders will seek to resolve the case through alternative means, including informing you about voluntary means and rehousing options.

Lenders can proceed with repossession, including for empty properties or where the customer wants the possession to go ahead, if it has been 12 months since your first missed payment. Lenders can commence court action, including obtaining a possession order from the courts, but, from 26 June 2023, will not seek to enforce this , in less than a year from the borrower’s first missed payment.

Your lender will be in touch with you up to six months before your fixed-rate deal expires to let you know it is coming to an end.

From 10 July, customers coming to the end of their fixed-rate deal will be able to book their new rate with their existing lender once you are contacted. Once you book this in, you will be able to request a better deal up to two weeks before your new term starts. This may vary between lenders, and yours will make clear the cut-off date for making changes, so that they can process this in time for your new term.

Customers ending their fixed deals are likely to find themselves with higher monthly repayments, if you are worried about meeting these please talk to your lender as soon as possible to discuss the options available for help.

You do not have to miss a mortgage payment to ask your lender for help. You should always speak to your lender before you cancel any direct debits, as these may result in missed payments, which will be shown on your credit file and will impact your credit score.

All lenders have plenty of support available to help if you are struggling. Contacting your lender will not impact your credit file, and they have a range of tailored forbearance ready to help. This applies to all lenders, not just those signed up to the Charter.

Yes, they apply across England, Scotland, Wales, and Northern Ireland.