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Mortgage Charter support

Applying for an interest only period or a term extension

We recognise this is a concerning time for our mortgage customers, particularly those who are approaching the end of their existing deal. That’s why we have joined the Chancellor’s Mortgage Charter and can offer you additional support, to make it easier for you to keep up with your payments if you are struggling.

Jump to:

Who can request support under the Charter?   Temporary switch to interest only   Extend your mortgage term

What you need to know before proceeding with any of the support options under the Charter

What happens next?

Mortgage Charter support examples:

Interest only example   Term extension example

Who can request support under the charter?

If you have a residential mortgage which is:

  • On a capital repayment, or part capital repayment and part interest only basis
  • Has at least 6 months left on the mortgage term
  • Up to Date (less than one month in arrears)

there are additional options available to help support you with the current cost of living pressures.

If your mortgage does not qualify for the above but you still require help, please do get in contact with us. We offer a range of existing support measures to customers facing payment difficulties.

In addition to the support offered through the Mortgage Charter you can still secure a new mortgage deal up to 4 months before your current deal ends. If you find a rate you would like to switch to, you must select the rate and complete the switch at least ten working days before your current one ends. If you don’t, you will be moved to our Standard Variable Rate for a minimum of one month.

We do not make an affordability or credit assessment for a product switch application. Click here for more information on this.

Temporary switch to interest only

You can apply to temporarily switch to interest-only payments for six months.

This is an agreement for you to take a break from paying the capital part of your monthly repayments for six months, which reduces the amount you need to pay during this period.

The payments you make will cover the interest charged on your mortgage, but your mortgage balance will not reduce during your interest only period as it does usually.

At the end of your interest only period we will recalculate your monthly mortgage payments so that your mortgage balance is repaid over the remaining term of your mortgage. This means your monthly instalments will be higher than before the interest only period.

Please click here to see an example of how a temporary switch to Interest Only could affect your mortgage.

Interest only switch example

Extend your mortgage term

You can extend your mortgage term which will reduce your monthly payments, with the option to revert to your original term within six months.

If you revert your mortgage back to its original term within 6 months of selecting this option then your monthly payments will be higher than before the term extension

You can request a term extension up to your retirement age (as long as this is not older than 70 years of age) or our maximum mortgage term of 40 years.

Please click here to see an example of how extending your mortgage term  could affect your mortgage.

Term extension example

What you need to know before proceeding with any of the support options under the Charter

  • These options can be taken without an affordability check
  • We will not report the use of these options as an arrangement on your credit file
  • You are able to take both options under the charter, however they can only be taken one at a time
  • If you have a joint mortgage we will act on the instruction of one of the borrowers
  • These options are not available for BTL mortgages (unless you have consent from us to let an existing residential property)
  • These options are not available if you have missed more than one payment
  • This is a variation to your mortgage contract and will be completed on a non-advised basis. This means you are making all the decisions about any changes yourself, and will not receive any advice from us
  • Both options will mean you pay more interest overall on your mortgage
  • You can make additional or extra payments if you’re able to do so
  • If you can afford to make your current repayments without support, you should continue to do so.

To help you understand the impact of such changes to your mortgage, there are several online mortgage calculators such as Money Helper’s.

What happens next?

If you choose either or both Charter support options we will send you a letter with your new estimated costs and help you understand the impact on your mortgage at point of selection.

Apply for Mortgage Charter Support

If you think the costs are too high please contact us as we can cancel the request and discuss other options that may be more suitable.

If you require immediate assistance

If your next mortgage payment is due within 15 working days, please call us straight away so we can get your application moving.

  • You'll need your mortgage account number – this starts with 40, has eight digits, and will be shown on any communications you've had from us about your mortgage.
  • You should be aware that because we are busier than usual, it may take up to 15 working days for your request to take effect.

Mortgage Charter support examples

We have set out some Charter support examples below:

Interest only

Mortgage Type: Capital and Interest Repayment

Interest Rate Remains Fixed at 6.00% throughout the period

 

Without interest only period

During interest only period of 6 months

With interest only period

Starting Point Balance:

£250,000

N/A

£250,000

Starting Point Term Remaining:

15 Years

N/A

15 Years

After 6 Month Period

End Point Balance:

£244,802.36

N/A

£250,000

End Point Term Remaining:

14 Years 6 Months

N/A

14 Years 6 Months

Monthly Payment*:

£2,099.15

£1,250

£2,143.94

Total Expected Interest Paid over the Term Remaining of the Mortgage*:

£117,667

N/A

£120,166

*Figures shown are estimated for demonstration purposes and based on all mortgage payments being maintained, no changes to the interest rate applied to the mortgage, and no other changes to the mortgage taking place. In reality interest rates available over the life of a mortgage will go up or down – which will impact monthly payments due and the total interest paid.

Term extension

Mortgage Type: Capital and Interest Repayment

Interest Remains Fixed at 6.00% through the period

Terms extension is requested to 20 years

 

Without term extension

During term extension period of 6 months

With term extension  period and reverted to original term

With term extension period and extended term remains

Starting Point Balance:

£250,000

£250,000

£250,000

£250,000

Starting Point Term Remaining:

15 Years

20 Years

N/A

N/A

After 6 Month Period

 

End Point Balance:

£244,802

N/A

£246,651

£246,651

End Point Term Remaining:

14 Years 6 Months

N/A

14 Years 6 Months

19 Years 6 Months

Monthly Payment*:

£2,158

£1,791

£2,174

£1,791

Total Expected Interest Paid over the Term Remaining of the Mortgage*:

£117,668

N/A

£118,551

£167,363
           

*Figures shown are estimated for demonstration purposes and based on all mortgage payments being maintained, no changes to the interest rate applied to the mortgage, and no other changes to the mortgage taking place. In reality interest rates available over the life of a mortgage will go up or down – which will impact monthly payments due and the total interest paid.

Your home may be repossessed if you don’t keep up repayments on your mortgage.