New Mortgage Charter

Chancellor Jeremy Hunt revealed the new Mortgage Charter after meeting with major lenders this month.

If you are a homeowner borrowing from a major mortgage lender, you could benefit from new measures, with no questions asked. As part of the measures, you will have the right to discuss options with your lender, without judgement.

Mortgage payments could now be temporarily decreased, for example, by changing from a 30-year to a 40-year mortgage. Alternatives include potential to extend a loan term for up to six months without receiving penalties or switching your mortgage to interest-only payments. If you are reaching the end of a fixed-rate mortgage term, you could now seal a new mortgage deal up to 6 months in advance.

From 26th June, if homeowners have missed a mortgage payment, they could also benefit from 12 months of protection from repossession.

What’s more, if you take up one of these measures, there will be no impact on your credit rating. The charter is intended to safeguard homeowner finances for up to 6 years, with approximately 75% of homeowners to benefit from the measures. Buy-to-let properties are excluded.

If you’d like to receive independent mortgage advice, we’d be happy to introduce you to one of our trusted partners. If you’re considering selling your property, please contact your nearest Mackenzie Smith branch for an up-to-date valuation.

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.