Policy paper

Mortgage Charter

Published 26 March 2026

1. Introduction

The Government recognises that families and businesses are worried about the impact of rising prices and recent volatility in global markets. These global developments can, in turn, impact mortgage rates.

While the UK’s mortgage market remains resilient, open and competitive across all major product types and segments, some households may face higher monthly payments as they come to the end of a fixed-rate deal and move onto a new rate.

Importantly, where a borrower can afford their mortgage repayments, they should continue to make them in full and on time. This will help keep the overall cost of borrowing down.

However, there are significant protections in place for those worried about their mortgage payments. Financial Conduct Authority rules require lenders to engage their customers who are struggling or worried about their payments individually to provide tailored support.

Since 2023, the Mortgage Charter has provided additional flexibilities to help borrowers manage their transition to a higher mortgage rate environment than had been the norm over the previous decade. A significant number of households have used Charter support. 

Recent global developments reinforce the importance of ensuring that support is available, particularly for those borrowers who have not yet adjusted to higher rates and who may be worried about meeting their repayments when they refinance.

On 26 March 2026, the Chancellor met with lenders representing 75% of the market, alongside UK Finance, to discuss the outlook for mortgage rates in light of the conflict in Iran, how lenders are responding, and what practical support is available to concerned borrowers. Following this meeting, mortgage lenders across the industry have reaffirmed their commitment to the Mortgage Charter and to supporting borrowers through this period.

The Charter is built around a simple principle: if you are worried about your mortgage, contact your lender as early as possible. Lenders will make it easy to speak to someone, to understand your options, and to agree a plan that is right for your circumstances. Seeking support and engaging with your lender to discuss options will not affect your credit score in any way, and earlier engagement will mean that lenders can offer more support.

2. The Charter

The UK’s largest mortgage lenders have reaffirmed their commitment to   the Mortgage Charter, which sets  the standards that they will adopt when helping their regulated residential mortgage borrowers who are worried about higher rates.^{[footnote 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  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.^{[footnote 2]}
• 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 recommitted to the following :

• 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.^{[footnote 3]}
• 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.^{[footnote 4]}
• customers who are up to date with their payments are permitted to, on a one-off basis:
  • 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 ^{[footnote 5]}. Customers who are currently in arrears should continue to work with their lender for the support that they need.

3. Lenders who have signed up to this Charter

• AIB Group (UK) plc, including AIB (NI) and Allied Irish Bank (GB)
• Aldermore Bank
• Bank of Ireland UK
• Barclays
• Bath Building Society
• Buckinghamshire Building Society
• Coventry Building Society, including the Co-operative Bank, Platform and Britannia
• Danske Bank
• Darlington Building Society
• Dudley Building Society
• Earl Shilton Building Society
• Ecology Building Society
• Family Building Society
• Furness Building Society
• Glasgow Credit Union
• Hinckley & Rugby Building Society
• HSBC, including First Direct
• Kensington Mortgage Company
• Leeds Building Society
• Leek Building Society
• Lloyds, including Halifax and Scottish Widows
• Loughborough Building Society
• Mansfield Building Society
• Melton Mowbray Building Society
• Metro Bank
• Monmouthshire Building Society
• Nationwide Building Society, including Virgin Money, Clydesdale Bank and Yorkshire Bank
• Natwest, including RBS and Ulster Bank
• Newbury Building Society
• Newcastle Building Society, including Manchester Building Society
• Nottingham Building Society
• OSB Group plc, trading as Precise Mortgages and Kent Reliance
• Perenna
• Principality Building Society
• Progressive Building Society
• Santander
• Scottish Building Society
• Skipton Building Society
• Spring Financial Group Limited, including MPowered Mortgages
• Suffolk Building Society
• Teachers Building Society
• Tipton & Coseley Building Society
• TSB, including Whistletree
• The Vernon Building Society
• United Trust Bank Limited
• West Bromwich Building Society
• Yorkshire Building Society

These lenders represent approximately 90%  of the mortgage market.

Other lenders will continue to provide tailored support to vulnerable borrowers, including options that may be similar to the flexibilities permitted under this Charter. Any borrower who is concerned about their mortgage repayments with lenders who have not signed up to this Charter should contact their lender or visit their website to see what support may be available.

1. These commitments do not apply to Buy to Let mortgages ↩

2. Applies to 97% of the mortgage market, where customers are up to date with payments and not seeking to borrow more or change their repayment type or term. ↩

3. No further action will be taken if a Possession Order is granted [DN deleted from June 2023]. ↩

4. Rates must be finalised two weeks before the new term starts. Six months is the maximum time lenders may offer for customers to sign up to a new deal under the Mortgage Charter. Borrowers should contact their lender to understand how far in advance their lender will be able to offer them the option to lock in a deal. ↩

5. Monthly payments after the support may be higher than they otherwise would have been and overall costs over the life of the mortgage will be higher. Affordability will need to be checked if borrowers wish to permanently convert to an interest-only mortgage, or where the mortgage term is proposed to be extended beyond the borrower’s expected retirement date. ↩