The Mortgage Charter is a set of commitments agreed between the UK Government, the Financial Conduct Authority and participating mortgage lenders to give residential mortgage borrowers more support if they are worried about repayments.

In plain English, it is designed to make it easier to speak to your lender early, understand short-term support options and avoid payment problems escalating unnecessarily. It can include options such as a temporary switch to interest-only payments, extending the mortgage term, reserving a new product with your existing lender, or discussing tailored help if you are in difficulty.

It is not a guarantee of a cheaper mortgage, a new deal, approval for borrowing, or protection from every consequence of missed payments.

If your mortgage payment is already difficult, or you expect it to become difficult when your fixed rate ends, the most important step is to act before the problem gets worse.

What does the Mortgage Charter mean in practice?

The Mortgage Charter is mainly about giving residential mortgage borrowers more breathing space and clearer routes to support.

Broadly, it means:

• you can contact your lender to discuss payment concerns without that conversation itself affecting your credit score;
• participating lenders may offer temporary support to eligible borrowers who are up to date with payments;
• some borrowers may be able to switch temporarily to interest-only payments;
• some borrowers may be able to extend the mortgage term to reduce monthly payments;
• borrowers approaching the end of a fixed rate may be able to reserve a new product with their existing lender before the current deal ends;
• where the lender allows it, borrowers may be able to move to a better like-for-like product before the new deal starts;
• participating lenders should not normally start repossession proceedings within 12 months of a first missed payment;
• missed mortgage payments can still be recorded on your credit file.

The Charter sits alongside existing FCA rules requiring lenders to treat borrowers in payment difficulty fairly. It does not replace mortgage advice and it does not mean every lender will offer exactly the same route in every case.

What exactly is in the Mortgage Charter?

The main features can be summarised as follows.

The key point is that the Charter is a framework, not a single mortgage product. What is available depends on your lender, your payment history, your mortgage type and your circumstances.

Who is the Mortgage Charter relevant for?

The Mortgage Charter is most relevant if you have a first-charge residential mortgage with a participating lender and you are:

• worried about your current mortgage payment;
• expecting your payment to rise when your fixed rate ends;
• already on a higher standard variable rate or reversion rate;
• concerned you may miss a payment;
• considering a temporary switch to interest-only;
• considering extending the mortgage term;
• deciding whether to take a product transfer or remortgage;
• recovering from a short-term income shock;
• trying to stop arrears becoming worse.

It is especially relevant for borrowers whose fixed rates were taken out when interest rates were lower and whose new payments may be materially higher.

The Bank of England’s Bank Rate influences the wider interest-rate environment, but individual mortgage rates are set by lenders and can change for several reasons, including funding costs, competition, loan-to-value, product type and borrower profile.

James Blackler at The Mortgage Blog recommends separating two questions before making a decision:

1. What do I need to do to reduce immediate pressure?
2. What is the best longer-term mortgage route once the pressure is understood?

Those are not always the same answer.

Who may not be covered by the Mortgage Charter?

The Charter is mainly aimed at residential mortgage borrowers. It may not apply, or may apply differently, where the case involves:

• buy-to-let mortgages;
• commercial mortgages;
• bridging finance;
• second-charge loans;
• mortgages with lenders that have not signed up;
• serious existing arrears;
• legal action that had already started before the support request;
• requests for additional borrowing;
• circumstances where wider debt, legal or insolvency advice is needed.

If your mortgage is not covered by the Charter, you should still speak to your lender if you are in difficulty. FCA rules and lender forbearance processes may still be relevant, but the specific Charter commitments may not apply in the same way.

Does using the Mortgage Charter affect your credit file?

Speaking to your lender about support should not, by itself, affect your credit score.

However, this is different from missing payments or entering arrears. If you miss mortgage payments, those missed payments may be reported to credit reference agencies and could affect future borrowing.

It is also important to distinguish between:

• asking your lender what help exists;
• agreeing a temporary support measure;
• changing the mortgage term;
• switching to interest-only;
• missing a payment;
• applying for a new product;
• remortgaging to a new lender.

Each can have different consequences.

If you are worried about your credit profile, read our guide to steps to assess and improving your credit score before making a new mortgage application.

How many times can you use the Mortgage Charter?

There is no useful one-size-fits-all answer, because the available support depends on your lender’s policy, the type of support requested, your payment history and whether you have already used a temporary arrangement.

Before assuming you can use the same option again, ask your lender:

• Is this support available under the Mortgage Charter, wider payment-difficulty support, or your own internal policy?
• Is the arrangement temporary or permanent?
• Can it be reversed?
• Will you need an affordability assessment?
• Will it affect future product-transfer or remortgage options?
• Will anything be reported to credit reference agencies?
• What happens when the support period ends?

If you are deciding whether to use Charter support more than once, it may be a sign that a wider affordability review is needed rather than another short-term fix.

What should you check before deciding on a Mortgage Charter option?

The cheapest-looking monthly payment is not always the best long-term decision. Before agreeing to a change, check both the immediate payment effect and the future cost.

If you are choosing between a product transfer and a remortgage, a broker can help you compare the realistic routes rather than simply chasing the lowest headline rate.

How can the Mortgage Charter affect your mortgage options?

Mortgage Charter support can influence your options, but it does not remove normal lending checks.

If you apply for a new mortgage, a remortgage or additional borrowing, lenders usually consider:

• income;
• employment or self-employment history;
• regular commitments;
• household expenditure;
• credit history;
• mortgage payment history;
• loan-to-value;
• property type and condition;
• age and mortgage term;
• dependants;
• future affordability;
• whether the property is residential or buy-to-let.

A product transfer with your existing lender may involve fewer checks than moving to a new lender, but that depends on the lender, the product and whether your circumstances have changed. If you want to borrow more, change ownership, extend the term significantly or move to a new lender, further assessment is more likely.

This is why the right route is not always the one with the lowest rate. It may be the route that works with your income, credit profile, timing, property and future plans.

What can make Mortgage Charter support harder?

Support can be harder where:

• you have already missed payments;
• the mortgage is not a first-charge residential mortgage;
• the lender has not signed up to the Charter;
• you need extra borrowing rather than payment support;
• your income has fallen permanently rather than temporarily;
• the term extension would run beyond a lender’s age limits;
• the property is unusual or difficult to value;
• there are wider unsecured debts;
• there are legal, separation or ownership issues;
• a deadline is very tight.

This does not mean help is unavailable. It means the route may need more care.

For some borrowers, the immediate priority is speaking to the lender about payment difficulty. For others, the better route may be reviewing the mortgage market before a fixed rate ends.

Which mistakes cause problems?

The biggest mistake is waiting until after a missed payment to ask for help. If you are worried, speak to your lender before the payment is missed where possible.

Other common mistakes include the following.

Assuming the Charter removes credit-file risk

The Charter helps borrowers speak to lenders without the conversation itself affecting their credit score. It does not mean missed payments disappear from your credit history.

If you miss mortgage payments, that can affect your credit file and future borrowing options.

Choosing interest-only without understanding the capital balance

Interest-only payments can reduce the monthly payment temporarily, but you are not repaying the mortgage capital during that period.

At the end of the temporary period, you still owe the mortgage balance. Your future payments may also rise if the mortgage needs to return to repayment over the remaining term.

Extending the term without checking total interest

A longer mortgage term can reduce monthly payments, but it can also increase the total interest paid over time.

That does not mean it is always wrong. It means you should understand the trade-off before agreeing to it.

Taking the existing lender’s product without checking alternatives

A product transfer can be convenient and may be suitable. It is not automatically the best route.

If your circumstances support a remortgage, it may be worth comparing the wider market. Equally, if your circumstances are complex, staying with the existing lender may be more realistic.

Assuming all lenders apply the Charter identically

The Charter is a set of commitments, but lender processes can vary. Criteria can change, and not every borrower will qualify for every option.

Ignoring what happens when temporary support ends

If you switch to interest-only or extend the term temporarily, make a plan for the end of the support period.

A short-term fix can create a second pressure point if you do not review it early.

Treating calculators as advice

Calculators can be useful for rough planning. They cannot assess lender criteria, credit history, product-transfer rules, future affordability or whether a route is suitable.

A common trap: waiting until the fixed rate ends before checking the real options

Imagine a residential borrower whose fixed rate ends in four months. Their new payment looks uncomfortable, so they plan to wait until the current deal finishes and then ask the lender for Mortgage Charter support if the payment becomes too high.

That delay can create avoidable problems. If the borrower is still up to date, there may be two separate routes to compare: reserving a product transfer with the existing lender, or applying to a new lender through a remortgage. If they wait until the higher payment has already started, the pressure on household cash flow is greater and any missed payment could affect future borrowing options.

A broker would usually want to separate three questions:

• Is this a short-term cash-flow issue? If income is temporarily lower, a temporary interest-only discussion with the lender may be relevant.
• Is this a rate-review issue? If payments are affordable but the new rate is higher, comparing a product transfer against a remortgage may be more suitable.
• Is this already a payment-difficulty issue? If a missed payment is likely, the lender should be contacted before arrears arise.

The practical lesson is that the Mortgage Charter should not be treated as a last-minute fallback. The strongest position is usually before a payment is missed, while the borrower can still compare lender support, product-transfer timing, fees, affordability, valuation risk and the wider remortgage market.

What could the Mortgage Charter look like in practice?

The best option depends on the borrower’s situation. These examples are simplified and are not personal advice.

Example 1: borrower coming to the end of a fixed rate

A borrower’s fixed rate is due to end in five months. Their existing lender allows them to reserve a new product before the current deal ends.

Under the Charter approach, they may be able to secure a new rate early and, if the lender offers a better like-for-like rate before the new deal starts, request the lower available option.

They should consider:

• whether the existing lender’s product is competitive;
• whether remortgaging elsewhere is realistic;
• whether income and credit profile support a new application;
• whether fees outweigh any rate saving;
• whether valuation and legal work can be completed in time if moving lender.

A broker can help compare the product transfer with a wider remortgage search.

Example 2: borrower worried about next month’s payment

A borrower has had a temporary income drop and is worried they may not meet next month’s mortgage payment.

The first step is to speak to the lender before the payment is missed. The conversation itself should not affect their credit score.

Possible outcomes may include:

• budgeting support;
• temporary interest-only payments;
• a term extension;
• tailored forbearance;
• signposting to free debt support where needed.

The borrower should not ignore the issue and hope it resolves itself. Missed mortgage payments can create wider consequences.

Example 3: borrower considering a term extension

A borrower has 18 years left on their mortgage and asks to extend the term to reduce monthly payments.

This may make the payment more manageable, but it may also increase the total interest paid. The borrower should ask:

• is the extension temporary or permanent?
• can it be reversed?
• will affordability be assessed?
• how much extra interest could be paid over time?
• does the new term run into retirement?
• will this affect future remortgage options?

For some borrowers, this may be a sensible breathing-space measure. For others, it may create a longer-term cost issue.

Example 4: borrower already in arrears

A borrower has already missed two mortgage payments.

The Charter’s repossession commitment may offer some reassurance, but it does not remove the arrears. The lender will still need to discuss a plan, and the missed payments may be recorded on the borrower’s credit file.

At this stage, it may be appropriate to speak to the lender, a mortgage adviser and a free debt-advice organisation, depending on the wider financial position.

What documents should you prepare before asking for help?

You do not need a perfect file before speaking to your lender if a payment problem is urgent. But if you are comparing support, product transfer and remortgage options, it helps to prepare the basics.

Useful documents and details include:

• latest mortgage statement;
• current interest rate and product end date;
• monthly mortgage payment;
• outstanding mortgage balance;
• remaining mortgage term;
• early repayment charge details;
• property value estimate;
• income evidence, such as payslips, accounts or tax calculations;
• recent bank statements;
• details of other credit commitments;
• expected changes in income or expenditure;
• details of missed or late payments, if any;
• the amount you can realistically afford each month;
• your target outcome, such as lower payments, rate certainty or avoiding arrears.

If you are self-employed, have variable income or have recently changed jobs, expect lenders to look more closely at income evidence.

What would a broker check first?

A broker will usually start by working out which problem you are trying to solve.

For complex cases, the value is often in knowing where not to apply as much as where to apply.

What red flags and trade-offs matter?

Before committing to any route, ask:

• what could make the lender decline or restrict the option?
• what happens if the property valuation is lower than expected?
• what happens if income changes again?
• what happens if rates change before completion?
• what is the total cost, including fees and early repayment charges?
• does the lower monthly payment increase long-term interest?
• does the term run into retirement?
• could this affect future remortgage options?
• what is the cleanest fallback if the preferred route does not work?

The Mortgage Charter can be useful, but it should be treated as part of a wider mortgage decision, not a shortcut around affordability.

When should you speak to your lender?

Speak to your lender as early as possible if:

• you may miss a mortgage payment;
• you have already missed a payment;
• your fixed rate is ending and the new payment looks unaffordable;
• your income has fallen;
• your household costs have increased sharply;
• you need temporary payment breathing space;
• you are unsure whether your mortgage is covered by the Charter.

If a payment problem is imminent, do not wait for a broker appointment before contacting the lender. You can still take advice afterwards about the longer-term mortgage route.

When should you speak to a broker?

Speak to a broker if:

• your fixed rate ends within the next six months;
• your payments have already increased;
• you are deciding between a product transfer and a remortgage;
• you are thinking about switching to interest-only;
• you are considering extending the mortgage term;
• your income has changed;
• you are self-employed;
• you want to borrow more;
• your credit profile has changed;
• you are unsure whether your current lender is your best realistic option.

Our role is to help you understand the routes that may be worth exploring, subject to your circumstances and lender criteria. Sometimes that means looking at a product transfer. Sometimes it means comparing the wider market. Sometimes it means speaking to your lender first because immediate payment support is the priority.

You can speak to a mortgage adviser or make a finance enquiry if you would like help reviewing your options.

This information is for general guidance only and does not constitute mortgage advice. Your options depend on your circumstances and lender criteria.

What should you read next?

• What is an offset mortgage?
• Quick guide to UK mortgage types
• Buying another property with a second mortgage
• Mortgage with no early repayment charge
• How long does it take to get a mortgage?
• Property finance hurdle in the UK
• What is a lock-in agreement?
• Buying property in a limited company vs personal name
• 7 reasons to use a property search agent

FAQs

What is the Mortgage Charter?

The Mortgage Charter is a set of commitments agreed between the UK Government, the FCA and participating mortgage lenders to support residential mortgage borrowers who are worried about repayments.

It can help borrowers speak to lenders early and consider options such as temporary interest-only payments, term extensions, product transfers and tailored support.

Does the Mortgage Charter apply to all mortgages?

No. It mainly applies to first-charge residential mortgages with participating lenders. Buy-to-let, commercial, bridging and second-charge lending may not be covered in the same way.

Does speaking to my lender affect my credit score?

The conversation itself should not affect your credit score. Missing payments is different. If you miss mortgage payments, that can be reported on your credit file and may affect future borrowing.

Can I switch to interest-only under the Mortgage Charter?

Some eligible borrowers may be able to switch temporarily to interest-only payments, depending on the lender’s policy and the borrower’s circumstances. This can reduce monthly payments, but the mortgage capital will not reduce during the interest-only period.

Can I extend my mortgage term under the Mortgage Charter?

Some eligible borrowers may be able to extend the mortgage term. This can reduce monthly payments, but it may increase the total amount of interest paid over time. You should check whether the extension is temporary or permanent and whether it can be reversed.

Is a product transfer better than remortgaging?

Not always. A product transfer can be simpler and may be suitable, especially if moving lender would be difficult. A remortgage may be worth considering if your circumstances support a new application and the overall cost is better. Fees, timing, valuation and lender criteria all matter.

Can my home still be repossessed if I use the Mortgage Charter?

The Charter says participating lenders should not normally start repossession proceedings within 12 months of a first missed payment. This does not remove the arrears or the need to agree a plan with the lender.

What should I do if I cannot pay my mortgage this month?

Contact your lender as soon as possible, ideally before the payment is missed. If you have wider debts or cannot see a realistic way to maintain payments, consider free debt advice as well as mortgage guidance.