As base rate rises have resulted in higher rates for mortgage borrowers, the charter was created to increase support as costs rise.
The charter was published on 26 June after a meeting between the Chancellor Jeremy Hunt and mortgage lenders. So far, 85 per cent of the UK’s mortgage market has signed up to the charter with more providers, as well as Vernon, expected to follow.
Measures include that a clause that states if anyone is worried about their mortgage, they can call their lender for information without it adversely effecting credit scores, and customers will also not be forced to have their homes repossessed within 12 months of missing their first payment.
In addition, those who are approaching the end of a fixed rate deal can now be offered the chance to lock in a deal for up to six months ahead. A new agreement was set up between lenders, the Financial Conduct Authority and the government to permit customers to arrange an interest-only mortgage period for six months. This is if they are currently up to date with their mortgage payments.
Vernon looks to increase its mortgage support
Steve Fletcher, chief executive of Vernon Building Society, said: “Vernon already provides tailored support to our members struggling with their mortgage now or are worried about meeting their payments in the future.
“We’re happy to sign up to the new mortgage charter which puts into place a set of measures to support borrowers as we go through this difficult period.”
“If any of our members are worried about their finances, they should call us as soon as possible to see what options are available. As always, we’ll do everything we can to support them.”
