Page 25 - July 2023

PROPERTY ADVICE

What does the new Mortgage Charter Anyone who is worried about their mortgage
mean for you? repayments can contact their lender for guidance,
without it negatively impacting their credit file.

If you’re worried about your mortgage repayments, the new
Mortgage Charter may offer some reassurance.

t’s been a very worrying time for many
homeowners, with interest rates rising The lenders who have signed up to the What if I’m due to remortgage?
Iand uncertainty in the financial and Mortgage Charter have agreed to allow From 10 July 2023, lenders signed up to the
housing markets, alongside the Cost-of- customers who are up to date with repayments Charter will offer customers the chance to
Living crisis. On 26 June 2023, the Chancellor to switch to interest-only payments for six lock in a new mortgage deal between three
of the Exchequer announced a new months, or to extend their mortgage term, to and six months before their current term
‘Mortgage Charter’ designed to help people reduce their monthly payments (with the option ends, offering the opportunity to secure a
worried about their mortgage repayments. to revert to the original term after six months). deal at the current rate, ahead of any further
potential rates rises.
What is the Mortgage Charter? Borrowers will also have the options of
The Mortgage Charter is an agreement switching to part interest-only, part repayment Borrowers will be able to manage their new
between UK lenders and the UK agreements, or even temporary payment deal and request a better like-for-like deal
Government. The Charter guarantees that holidays, as were seen during the initial with their lender up until the new mortgage
anyone who is worried about their mortgage Covid-19 lockdown. repayment term starts, if one is available.
repayments can contact their lender for It should be noted that not all lenders offer
guidance, without it negatively impacting What if I’m in arrears on my mortgage? the six-month option, and it is best to speak
their credit file. The Charter only applies to The Mortgage Charter states that borrowers to a mortgage adviser or your lender for
regulated mortgages and does not apply to will not be forced to leave their home without tailored advice.
buy-to-let mortgages. consent, in less than a year from their first
missed mortgage repayment. ESPC Mortgages offer expert independent
Who has signed the Mortgage Charter? mortgage advice in Edinburgh. Whether you
At the time of going to print, around 85% of This means that repossession procedures are looking for first time buyer mortgage
UK lenders have signed up to the Mortgage would not begin for up to a year after missing advice, are interested in finding out more
Charter. a payment, with lenders expected to continue about buy-to-let mortgages or would like to
working with and supporting borrowers during re-mortgage, get in touch with the team on
this period. 0131 253 2920 or fsenquiries@espc.com.
What if I’m up to date with my
mortgage payments?
If you’re currently up to date with your
mortgage payments, the Mortgage Charter
promises to support you in switching to a new The initial consultation with an ESPC Mortgages adviser is free and errors which, despite our precautions, it may contain.
mortgage deal at the end of your existing without obligation. Thereafter, ESPC Mortgages charges for mortgage
advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY The Financial Ombudsman Service is available to sort out individual
fixed-rate term, without another affordability BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A complaints that clients and financial services businesses aren’t able
MORTGAGE OR OTHER LOANS SECURED AGAINST IT. to resolve themselves. To contact the Financial Ombudsman Service,
check. Lenders will provide information if your
please visit www.financial-ombudsman.org.uk.
fixed term is ending and will offer support to The information contained within this article is subject to the UK
anyone struggling with repayments. regulatory regime and therefore restricted to consumers based in the ESPC (UK) Ltd is an Appointed Representative of Lyncombe
UK. It has been provided in good faith. Whilst every care has been taken Consultants Ltd which is authorised and regulated by the Financial
in the preparation of the information, no responsibility is accepted for any Conduct Authority.
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