Support Confirmed for Mortgages

Following a meeting with the Chancellor of the Exchequer, the UK’s six largest lenders and building societies have committed to proactively contact 1.6 million customers whose fixed-rate mortgage deals end between now and the end of 2026.

They will set out options and explain how to access any bespoke support needed, well before there is any change to payments.

The conflict in Iran has led to increases in mortgage rates being offered by lenders. Many businesses and households already on fixed-rate deals will not be affected for now. However, those looking to take out new finance or renew deals will be concerned about these recent increases.

To help with this. the Mortgage Charter was also reaffirmed at the meeting. The Charter sets out the standards lenders will adopt when helping their customers. It provides the option for customers to:

• Book a new rate up to six months ahead.
• Switch to a new deal with their existing lender without a fresh affordability check.
• Move to interest-only payments for six months to get some temporary breathing space. Any discussions about support will not affect credit scores.

Currently, lenders report that lending continues to hold up well despite the recent changes and arrears remain low.

If the increase in rates is creating pressure for your business and you would like to consider the different financing options that might be available to you, please do get in touch. We would be happy to help you.

See: https://www.gov.uk/government/news/chancellor-gets-banks-to-step-up-mortgage-support-for-customers 

Looking for advice? Check out our full range of services. From payroll help to taxation advice, our expert team is available to lend a hand.