Financial Mortgages

We know how challenging it can be if you are looking at a sharp increase in interest rates, and therefore payments, on your mortgage.

Paperweight’s Money Advice Team, accredited by the FCA, can explain your mortgage options so that you understand your choices, enabling you to make your informed decision with confidence.

The Mortgage Charter

The UK’s largest mortgage lenders and the Financial Conduct Authority have agreed with the Chancellor a set of standards that they will adopt when helping their regulated residential mortgage borrowers worried about higher rates.

No lender wants to repossess someone’s home. And repossession is only done as either a last resort or when it is in the financial interests of the borrower. For this reason all lenders have an extensive range of measures that they use for customers experiencing difficulties. They will continue to use these in conjunction with the new measures agreed by the signatories to this Charter.

All lenders have agreed:

Anyone worried about their mortgage repayments can contact their lender for help and guidance, without any impact on their credit file and we would encourage you to contact your bank who are there to help.
Support for customers who are up-to-date with payments to switch to a new mortgage deal at the end of their existing fixed rate deal without another affordability check
Lenders will provide well-timed information to help customers plan ahead should their current rate be due to end.
Lenders will offer tailored support for anyone struggling and deploy highly trained staff to help customers. This could mean extending their term to reduce their payments, offering a switch to interest only payments, but also a range of other options like a temporary payment deferral or part interest-part repayment. The right option will depend on the customer’s circumstances.

Signatories to this Charter have agreed:

A borrower will not be forced to leave their home without their consent unless in exceptional circumstances, in less than a year from their first missed payment.
Customers approaching the end of a fixed rate deal will have the chance to lock in a deal up to six months ahead. They will also be able to manage their new deal and request a better like for like deal with their lender right up until their new term starts, if one is available.
A new deal between lenders, the FCA and the government permitting customers who are up to date with their payments to:
Switch to interest-only payments for six months or extend their mortgage term to reduce their monthly payments and give customers the option to revert to their original term within 6 months by contacting their lender

These options can be taken by customers who are up to date with their payments without a new affordability check or affecting their credit score. Customers who are currently in arrears should continue to work with their lender for the support that they need.

The government confirmed it has delivered:

action to make Support for Mortgage Interest easier to access; if you are on Universal Credit you can now receive help with your mortgage interest payments after three months
record levels of funding for the Money and Pensions Service to provide debt advice in England

The FCA has introduced:

new guidance clarifying how lenders can support borrowers impacted by the rising cost of living
information for borrowers on the options and support available if they are struggling with payment.

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