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Some relief at a worrying time..

A new Mortgage Charter has been introduced to protect customers worried about losing their homes due to mortgage rate rises.

The Government and lending sector have come together to agree and implement a new mortgage charter in order to re-assure and protect customers struggling to meet new mortgage rate increases. The Charter will provide some welcome relief for homeowners concerned about falling into arrears, or potentially losing their home if they can’t keep up with the new payments. 

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.1 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: 
  • From 26th June, 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.
  • With effect from 10th July 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.

Product Features

Our build proposition will cover new build houses and flats
For all buyers up to £833k purchase price
Deposit Unlock is owned by house builders, so here for the long term

Typical example

Cost of your new home


5% deposit


95% mortgage


Figures shown are provided for illustration purposes only. Gallagher Re is not able to give financial advice, please consult an independent financial advisor. Terms and conditions apply. The Deposit Unlock scheme is subject to the lender’s participation on selected units at eligible developments.

For full terms and conditions, please ask a sales advisor at your selected development

How to buy with Deposit Unlock

Deposit Unlock is a straightforward process that makes home ownership more affordable.