The Mortgage Charter and how it helps you

If you are up to date with your mortgage payments but worried about what happens when your fixed rate ends, the Mortgage Charter is a voluntary agreement between lenders, the government and the Financial Conduct Authority that gives you extra options. It has been in place since 2023 and was reaffirmed in March 2026¹.

The Charter lets you do three main things: switch to a new deal with your lender up to six months before your current fixed rate ends, move to interest-only payments for six months, or extend your mortgage term to reduce your monthly payments, with the option to switch back within six months². You can take these options without a new affordability check and without it affecting your credit score³.

The catch is that the Charter only applies to borrowers who are up to date with payments, and it does not cover buy-to-let mortgages⁴. If you are already in arrears, different help is available, and it is worth contacting your lender early.

What the Mortgage Charter is: a deal between lenders, the government and the FCA

The Mortgage Charter is a set of commitments agreed between the government, UK lenders and regulators to give more options and support to people struggling with their mortgage payments⁵. It was published on 26 June 2023, and the FCA worked rapidly with signatories to adopt the necessary rules by Friday 30 June 2023².

It is not legislation. It is a voluntary agreement between mortgage lenders and the government to give mortgage customers extra support⁶. The commitments sit over and above the FCA's normal requirements, which means lenders who sign up are promising to do more than the rules alone demand⁷.

The parties to the agreement are lenders, the Financial Conduct Authority and the government⁸. The government asked mortgage providers to help customers afford their payments because of high interest rates⁹.

The Financial Ombudsman Service has described the Charter as offering options and flexibility for people in financial difficulty¹⁰. The Ombudsman can look at complaints about how a lender has applied the Charter, and it has published guidance on mortgage interest rates and financial difficulties¹¹.

The Charter was updated in 2026. The government's 2026 version sets out the standards lenders will adopt when helping their customers, and signatories will provide borrowers with additional flexibilities to manage their mortgage payments over a short period³. Following this, mortgage lenders across the financial services industry reaffirmed their commitment to the Charter³.

Who the Mortgage Charter covers: regulated residential mortgage borrowers

The Charter applies to regulated residential mortgage borrowers who are worried about higher rates¹. It covers people with mortgages in Scotland as well as England, Wales and Northern Ireland¹².

The key eligibility rule is that you must be up to date with your mortgage payments. The Charter only applies to customers who are up to date⁴. Help under the Charter is only available to residential mortgage accounts that are currently up to date¹³. Skipton Building Society states plainly that the Charter only applies to borrowers who are up to date with their mortgage payments¹⁴.

If your account is already in arrears, you cannot use the Charter, but other support is available¹⁵. That is an important distinction: the Charter is designed to help people who are managing now but worried about the future, not to resolve existing arrears.

Buy-to-let mortgages are excluded. The commitments do not apply to Buy-to-Let mortgages⁴. Accord Mortgages states that the Mortgage Charter does not extend to Buy to Let properties¹⁶. Family Building Society says the same¹⁷.

It is unclear whether the Mortgage Charter applies to second charge mortgages¹⁸. If you have a second charge loan, ask your lender directly.

The standards lenders who sign up commit to

Lenders who sign up to the Charter commit to a specific set of standards. The government's 2026 Charter sets out the standards lenders will adopt when helping their customers³.

The first commitment is about switching deals. Borrowers coming to the end of a fixed interest rate period who are worried about rising interest rates, where their lender has signed up to the Charter, can get a new rate up to six months before the old one expires, and can change their mind if rates go down¹¹. Customers who are up to date with payments can switch to a new mortgage deal with their lender at the end of their existing fixed-rate agreement without a new affordability check¹⁹.

The second commitment is the interest-only option. Lenders will switch you to interest-only payments for six months². This is available to borrowers who are up to date with payments whose lender has signed up to the Charter²⁰.

The third commitment is the term extension. Lenders will extend your mortgage term to reduce your monthly payments, with the option to revert to your original term within six months by contacting your lender¹. This is available to customers who are up to date with their payments, on a one-off basis¹.

The government's 2023 policy statement described the tailored support options as extending term, switching to interest only, temporary payment deferral, or part interest-part repayment⁴. The 2026 Charter focuses on the first three.

The Financial Ombudsman Service has published information about the Charter's options and flexibility for people in financial difficulty¹⁰.

Support options: extending your mortgage term and other help

The Charter offers three main options, and each works differently.

Switching to a new deal early. If you are coming to the end of a fixed rate, your lender can offer a new rate up to six months before your old one expires, and you can change your mind if rates go down¹¹. You can manage your new deal and request a better like-for-like deal with your lender right up until your new term starts, if one is available²¹. This gives you certainty earlier without locking you in if rates fall.

Switching to interest-only for six months. If you are up to date with your payments, your lender should allow you to switch to interest-only payments for six months²⁰. This reduces your monthly payment because you are only paying the interest, not the capital. After six months, you return to your normal repayment schedule unless you arrange something else.

Extending your mortgage term. You can extend your mortgage term to reduce your monthly payments, with the option to revert to your original term within six months by contacting your lender¹. For example, you could extend from 15 to 20 years²², or stretch from 30 years to 35 years²³. The Mortgage Lender says you can apply to extend the term so you repay the balance over a longer time, which reduces your monthly payments²⁴.

If you extend your term and later want to change back, Barclays says your payments will be higher than they were before you extended the term if you do this while still within the support period⁹. If you keep the extended term after the support ends, you will keep the extended mortgage term and your monthly payments will stay the same⁹.

StepChange notes that extending the term lowers your monthly payments, making them more affordable, but may extend into retirement²⁵.

Only lenders that have signed up are bound by it

The Charter is voluntary. If your lender has not signed up, it is not bound by the commitments, though it still has to follow the FCA's rules on treating customers fairly and handling arrears.

Most UK mortgage lenders have signed up to the Mortgage Charter¹⁸. The government's 2023 policy statement said the signatories represented approximately 90% of the mortgage market². Which? reported in November 2024 that there were 49 lenders signed up, representing around 90% of the mortgage market⁵.

The government's 2026 Charter lists 46 named lender groups under "Lenders who have signed up to this Charter"¹. The difference between the 49 figure from 2024 and the 46 named groups in 2026 may reflect consolidation or a change in how lenders are counted.

If you are having problems with your mortgage, you could get help from your lender if it has signed up to the Mortgage Charter²⁶. To access the new rate, your lender needs to have signed up to the Mortgage Charter¹¹.

If your lender is not signed up, you can still ask for help. Lenders have their own forbearance policies, and the FCA expects them to treat customers in financial difficulty fairly. You can also complain to the Financial Ombudsman Service if you are unhappy with how your lender has handled your situation¹¹.

How to ask your lender for help under the Mortgage Charter

The first step is to contact your lender. You can contact your lender for help and guidance without any impact on your credit file²⁷. First direct says you can contact your bank to discuss options for support without affecting your credit score²⁸. Bank of Ireland UK says applying for help under the Mortgage Charter will not affect your credit score²⁹.

An affordability check is not usually needed, and the support does not affect your credit file²². Danske Bank says that when a customer takes an option under the Mortgage Charter, it will not assess their affordability and will not report adverse information that could impact their credit score³⁰.

When you contact your lender, be ready to explain your situation. The lender will talk you through the options and what each one means for your payments. If you want to extend your term, some lenders ask you to complete a Mortgage Charter request form³¹.

If you are struggling and your lender cannot help under the Charter, free advice is available. National Debtline and StepChange offer free debt advice²⁵. Citizens Advice can help you look at cutting your mortgage costs³². Scope has information for disabled people and carers²³, and Independent Age has guidance for older people³³.

If you are in Scotland, the Home Owners' Support Fund and Mortgage to Rent scheme may be available³⁴. The Scottish Government's cost of living campaign also has information on rent and mortgage support²⁶. In Wales, you can get help with housing costs³⁵. In Northern Ireland, nidirect has information on mortgage arrears and payment difficulties³⁶.

Support for Mortgage Interest is a government loan that helps towards paying the interest payments on your mortgage³⁷. You can challenge a Support for Mortgage Interest loan decision if you think it is wrong³⁷.

If you are a landlord in difficulty, the Charter does not apply, but you can still contact your lender. Some lenders will grant a consent to let on your current deal, while others may insist on switching to a buy-to-let mortgage³⁸.

Where the Mortgage Charter stops

The Charter is not a complete safety net. It only applies to borrowers who are up to date with payments, and it does not cover buy-to-let mortgages⁴. If you are already in arrears, you cannot use the Charter, but other support is available¹⁵.

The Charter does not write off debt or reduce the amount you owe. Extending your term lowers your monthly payment but increases the total interest you pay over the life of the mortgage¹. Switching to interest-only for six months means you are not paying down capital during that period.

The Charter is voluntary, so lenders that have not signed up are not bound by it⁶. Even for lenders that have signed up, the options are not automatic: you need to ask, and the lender will assess your circumstances.

If you are unhappy with how your lender has handled your request, you can complain to the Financial Ombudsman Service. The Ombudsman is free and independent, and it can look at complaints about mortgage interest rates and financial difficulties¹¹.

Mortgages are priority debts. Lenders can repossess a home and sell it to recover their money³⁶. Lenders and free advice services such as National Debtline, StepChange and Citizens Advice deal with people who contact them early.