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Poll: Are you seeing more customer enquiries since the launch of the Mortgage Charter?
The widely-publicised Mortgage Charter has put the sector into the spotlight with lenders under pressure to support customers during the cost of living crisis.
The charter, which is voluntary, was published in June and has been signed by around 43 lenders. The government says that this covers around 90 per cent of the mortgage market.
The measures involve allowing customers to contact their lender for help without impacting their credit file, allowing borrowers up to date with payments to switch to a new mortgage deal at the end of their existing fixed rate deal without an affordability check, providing well-timed information to help customers plan ahead for fixed rate maturity.
Repossessions are also banned in less than a year from first missed payment unless there are “exceptional circumstances”, customers can lock in deals up to six months ahead, can request a better like-for-like deal until their new term starts and can switch to interest-only payments or six months or extend mortgage terms.
Lenders say that the charter has created consistency in the market and made it clearer to customers what help is available if they are struggling.
This month, Mortgage Solutions is asking if the Mortgage Charter has led to an uptick in customer enquiries around support measures.
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