Lenders, including Nationwide, Virgin Money, Barclays, Santander, Natwest, Lloyd Banking Group and HSBC, met with Chancellor Jeremy Hunt yesterday to discuss actions that can be taken to support people struggling to pay their mortgage.
The lenders involved said they would continue to work with the government on this issue, outlining some of the support they offered and urged borrowers to get in touch if they were concerned about payments.
Commitments to help borrowers
Debbie Crosbie, CEO of Nationwide Building Society, said that it had reduced rates for those coming to the end of their deal so they can access a fixed rate below five per cent, regardless of loan to value or tenure.
She added that the mutual had also offered additional support in the form of term extensions and forbearance tailored to individual circumstances and it had given an additional £1m to debt charities and partners to help those in financial difficulty.
David Duffy, CEO of Virgin Money, said that the firm was “being proactive” in offering support to those in need and it acknowledged that many customers may have to “make difficult decisions in the current economic environment”.
“Today’s commitments represent an important step in ensuring that consumers are well supported in the coming period,” he noted.
Barclays UK CEO Matt Hammerstein continued that it was “committed to helping every borrower manage their repayments while adjusting to the current environment” and today’s announcements were a “critical part of that”.
He said that Barclays works with customers to “find any feasible way to keep them in their home”, and there was a “dedicated team who are trained to offer dedicated and tailored support to each individual borrower, using a wide range of support options”.
Hammerstein said there were also tools and information available to help customers manage their finances and it was also partnered with Citizens Advice, StepChange and the National Debtline.”
‘The earlier customers can engage with their lender the better.’
Mike Regnier, CEO of Santander UK, added that the bank welcomed the Treasury’s involvement to support mortgage borrowers through the cost of living crisis and it was “keen to continue to work collaboratively with the government, supervisors, and the wider industry on this issue”.
“We remain fully committed to supporting customers who may face additional pressures on their finances over the months ahead,” he noted.
Natwest Group CEO Alison Rose encouraged those who were experiencing financial difficulty or were concerned to get in touch and the lender had “highly trained colleagues who are there to listen, understand and work with them to find a way forward”.
She continued: “Support for our customers will be tailored to their individual needs, and could include such things as forbearance, breathing space, repayment plans, or if it’s right and affordable for the customer, extending a mortgage term to spread payments or a temporary switch to an interest-only mortgage.
“We have proactively contacted customers eight million times so far this year to help them to get more control over their finances, and we will continue to play an active role in supporting customers and communities across the country.”
Jasjyot Singh OBE, CEO of consumer lending, Lloyds Banking Group, said that it was “committed to making homeowners feel supported in the coming months”.
“We want to talk to anyone who feel like they might be facing difficulty so that we can find appropriate, tailored solutions. The earlier we talk to someone who might be struggling, the more tools we have to help,” he added.
Ian Stuart, CEO of HSBC UK, said that HSBC had a programme in place for “proactively reviewing where hardship might be on the horizon, and helping prevent customers from falling into financial difficulty”.
He added that it worked closely with customers already experiencing financial difficulty to understand their individual circumstances and find the right solution.
“For mortgage customers experiencing financial difficulty, we stand ready to help and have a number of options available that are tailored to individual circumstances.
“We would strongly encourage people not to wait until they are in financial difficulty before seeking help. The earlier they can engage with their lender the better.”
