On 23 June 2023, the Government reported that the Chancellor had met with the UK’s principal mortgage lenders and the FCA, to agree support for people struggling with mortgage repayments.

The Government reports that the principal lenders – which cover over 75% of the market – have agreed to a new mortgage charter providing support for residential mortgage customers. This includes:

  • Customers won’t be forced to have their homes repossessed within 12 months from their first missed payment.
  • Customers approaching the end of a fixed rate deal will be offered the chance to lock in a deal up to six months ahead. They will also be able to apply for a better deal right up until their new term starts, if one is available.
  • A new agreement between lenders, the FCA and the government permitting customers to switch to an interest-only mortgage for six months, or extend their mortgage term to reduce their monthly payments and switch back to their original term within the first six months, if they choose to. Both options can be taken without a new affordability check or affecting their credit score.