Chancellor meets lenders representing 75% of mortgage market and lenders reaffirm Mortgage Charter commitments

The Chancellor met mortgage lenders representing 75% of the market, alongside UK Finance, on 26 March 2026 to discuss the outlook for mortgage rates in light of the conflict in Iran and the practical support available to borrowers¹. Following the meeting, lenders across the industry reaffirmed their commitment to the Mortgage Charter, the Treasury said¹.

The government said it recognises that families and businesses are worried about the impact of rising mortgage rates in response to recent volatility in global markets, particularly those coming to the end of a fixed rate deal¹. It added that the UK mortgage market "remains resilient, open and competitive across all major product types and segments, and significant protections remain in place for anyone worried about their mortgage payments"¹.

"On 26 March 2026, the Chancellor met with lenders representing 75% of the market, alongside UK Finance, to discuss the outlook for mortgage rates in light of the conflict in Iran, how lenders are responding, and what practical support is available to concerned borrowers. Following this meeting, mortgage lenders across the industry have reaffirmed their commitment to the Mortgage Charter and to supporting borrowers through this period."

Mortgage Charter, GOV.UK²

The Charter, first introduced in 2023, sets the standards signatories adopt when helping regulated residential mortgage borrowers worried about higher rates². Its commitments do not apply to buy-to-let mortgages². The Treasury said the lenders signed up represent approximately 90% of the mortgage market². Named signatories include Barclays, HSBC (including First Direct), Lloyds (including Halifax and Scottish Widows), NatWest (including RBS and Ulster Bank), Nationwide (including Virgin Money, Clydesdale Bank and Yorkshire Bank), Santander, TSB (including Whistletree) and Coventry Building Society (including the Co-operative Bank, Platform and Britannia)².

The main flexibilities, as set out in the Charter, are²:

Measure	Detail
Switching deals without a new affordability check	For customers up to date with payments, at the end of an existing fixed rate deal; applies to 97% of the market where customers are up to date and not borrowing more or changing repayment type or term
Locking in a deal ahead of time	Up to six months before the current deal ends; rates must be finalised two weeks before the new term starts
Interest-only switch	Six months, on a one-off basis, for customers up to date with payments
Term extension	To reduce monthly payments, with the option to revert to the original term within six months by contacting the lender
Repossession protection	A borrower will not be forced to leave their home without consent unless in exceptional circumstances, in less than a year from their first missed payment

The Charter states that these options can be taken by customers who are up to date with their payments without a new affordability check or affecting their credit score². It also notes that monthly payments after the support may be higher than they otherwise would have been and overall costs over the life of the mortgage will be higher, and that affordability will need to be checked if borrowers wish to permanently convert to interest-only, or where the term is extended beyond the borrower's expected retirement date². Anyone worried about repayments can contact their lender without any impact on their credit file².

Why it matters for households

The reaffirmed commitments apply to borrowers with regulated residential mortgages at signatory lenders, which the Treasury says cover about 90% of the market². For someone whose fixed rate deal is ending, the Charter allows a new deal to be locked in up to six months ahead, with rates finalised two weeks before the new term starts². Borrowers up to date with payments can, on a one-off basis, switch to interest-only for six months or extend their term to lower monthly payments, with the option to revert within six months². The Charter states these steps can be taken without a new affordability check or a credit score impact, though it warns that payments afterwards may be higher and overall costs over the life of the mortgage will be higher². Buy-to-let mortgages are excluded². The government said significant protections remain in place for anyone worried about mortgage payments, and that FCA rules require lenders to engage customers individually to provide tailored support¹.

What happens next

No further steps have been reported beyond the 26 March 2026 meeting and the reaffirmed commitments¹. The Charter states that borrowers should contact their lender to understand how far in advance their lender will be able to offer the option to lock in a deal².

Sources2 cited