In 2023, the government implemented a mortgage charter designed to help homeowners struggling with higher interest rates.
We’ve implemented the key principles of the mortgage charter, but how we’ve chosen to implement them might differ slightly from other lenders.
For example, a term extension – one option set out by the mortgage charter – would lower your monthly payments, but it could hugely increase the amount of interest you'd owe over the life of your mortgage.
So we'll always try to understand if the measures set out by the mortgage charter will offer you the best support based on your individual circumstances or if other options may be better for you.
The mortgage charter measures we’ve implemented will allow customers who are up to date with their payments to:
Reduce their capital payments (including to zero) and pay interest only for up to 6 months without accruing arrears,
Extend the mortgage term up to no longer than retirement age, and
Fully or partly reverse a term extension within 6 months of the initial request to extend the term
These measures will result in more interest being charged over the lifetime of the mortgage, so they may not be the right option for you.
For that reason, we recommend that you pay your mortgage if you’re able to.
Homeowners who are approaching the end of their fixed interest rate will be able to lock in a new rate 180 days in advance. If you lock in a rate, you'll be able to switch to a different rate as many times as you like, or cancel your rate switch altogether, up until 5 working days before your product switch completes without paying any early repayment charges.
And provided your mortgage account is in good standing, you'll be able to switch to a new mortgage deal at the end of your existing interest rate without another affordability check.