Last week Chancellor Jeremy Hunt struck a deal with lenders to help those facing surging mortgage payments.
This is being done through the "Mortgage Charter" which will offer extra tailored help on top of the help lenders would normally give their customers.
Led by Uk Finance, participating lenders will launch a communications campaign to make sure people know what to expect when they contact their lenders.
Currently, lenders representing 85% of the residential market have signed up.
In a statement released alongside the policy paper, the Chancellor said the measures would "offer comfort to those who are anxious about high interest rates".
David Postings, CEO of UK Finance, added: “Lenders recognise and understand this is an anxious time for mortgage customers and there is a lot of support available.
"Lenders have been contacting and supporting millions of customers and are working with the government and regulators to continue to deliver a range of support options for customers.
"Anyone who is worried about their finances should contact their lender to find out what options are available to help."
What is in the new Mortgage Charter?
Under the Mortgage Charter, anyone worried about their repayments can contact their lender for help and guidance, without any impact on their credit file.
Lenders have agreed to permit 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.
Borrowers will also have the option to revert to their original term within six months by contacting their lender.
Those struggling can also be offered a range of other options like a temporary payment deferral or part interest-part repayment.
From July 10, customers approaching the end of a fixed-rate deal will have the chance to lock in a deal up to six months ahead. T
hey 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.
Alongside this, lenders will need to provide "well-timed information" to help customers plan ahead should their current rate be due to end.
From June 26, borrowers will also not be forced to leave their home without their consent unless in exceptional circumstances, in less than a year from their first missed payment.
Affordability will need to be checked if borrowers wish to permanently move to an interest-only mortgage, or where the mortgage term is proposed to be extended beyond the borrower’s expected retirement date.
The details of the charter were published on Gov.uk here.
Which lenders have signed the Mortgage Charter?
As of writing, 32 lenders have signed up to the Mortgage Charter and this represents around 85% of the market.
- Barclays
- Natwest, including RBS and Ulster Bank
- Lloyds, including Halifax and Scottish Widows
- Nationwide Building Society
- HSBC, including First Direct
- Santander
- Virgin Money, including Clydesdale Bank and Yorkshire Bank
- TSB
- Scottish Building Society
- Buckinghamshire Building Society
- Newcastle Building Society
- Hinkley & Rugby Building Society
- Nottingham Building Society
- Principality Building Society
- Suffolk Building Society
- West Bromwich Building Society
- Loughborough Building Society
- Family Building Society
- Coventry Building Society
- Yorkshire Building Society
- Skipton Building Society
- Leeds Building Society
- Bath Building Society
- Ecology Building Society
- The Vernon Building Society
- Leek Building Society
- Furness Building Society
- Melton Mowbray Building Society
- Glasgow Credit Union
- Darlington Building Society
- Progressive Building Society
- Co-Op Bank
