This comes after the lenders agreed to the government’s Mortgage Charter, which set out a series of support measures for homeowners.
Natwest
Natwest will allow its retail and wealth borrowers to switch to an interest-only mortgage for six months or extend their mortgage term. The term extension includes a six-month cooling off period so people can go back to the original term if they want to.
The lender said each option could be done without an affordability check or having their credit score impacted.
Borrowers can apply for this digitally or by calling Natwest.
Natwest also said it would not force anyone to leave their home if they are unable to pay their mortgage for at least 12 months.
This in addition to its existing support which allows borrowers to switch to a new rate without an affordability check and the option to secure a new rate up to six months before their current one ends.
For borrowers who are behind on mortgage payments, Natwest has a policy to give them 60 days ‘breathing space’ where it will not apply any charges or make contact while they seek money advice.
They can also repay missed payments over a 24-month period, or reduce their monthly payment up to £0 if needed for up to the value of three missed payments.
Miguel Sard, MD, One Bank Mortgages at Natwest said: “We are one of the first high street banks to launch the Mortgager Charter support, which continues to reflect our purpose and aims to support customers currently experiencing higher interest rates, higher monthly mortgage payments and wider pressure due to the rise in cost of living.”
Santander
From 25 July, Santander will allow brokers to book a new deal for their clients six months before their current fixed rate deal ends. This support will be available direct to customers from the same date.
This is in addition to measures which came in on 10 July and enable brokers to view current product transfer rates if their client has a product transfer deal pending and there are at least 14 days until the deal starts.
From 24 July, Santander mortgage borrowers can reduce their monthly payments, as long as they are up to date. They can also switch to an interest-only payment structure or increase their mortgage term.
These options must be applied for by the customer either online or by phone.
