The Mortgage Charter is an agreement between the government and most UK lenders to help people who have borrowed to buy a home and are worried about rising payments. It lets you lock in a new deal up to six months early, switch to interest-only, or extend your term for a short period. This guide explains how it works and who can use it.
“The Mortgage Charter has become a vital safety net for homeowners. It gives people practical options at the exact moment they need them most – whether that’s locking in a new rate early or easing payments for a short period. What matters is that borrowers know they won’t be penalised for asking for help.
Lenders have committed to clear communication, fair treatment and real flexibility, and that’s made a huge difference. If you’re worried about rising payments or your deal ending soon, the Charter is there to give you time, space and support to make the right decision.”
Rachel Geddes
Strategic Lender Relationships Director
What is the Mortgage Charter?
The Mortgage Charter is an agreement between the UK Government and most major mortgage lenders to give homeowners clear, fair, and flexible support when they’re worried about their mortgage payments. This agreement is backed by the Financial Conduct Authority (FCA), so you can be sure that it has some teeth!
When and why it was introduced
The Mortgage Charter was introduced in June 2023. Back then mortgage rates had risen sharply, and lots of people were coming off cheap fixed rate deals. The aim of the Charter was simple: give borrowers more choice and more time.
The role of the government, the FCA and UK Finance
Here’s what happened behind the scenes when the Mortgage Charter was being set up:
HM Treasury (part of the UK Government) agreed the Charter with lenders and set the whole thing up.
The Financial Conduct Authority (FCA) already ensures lenders treat customers fairly under existing rules, especially the Mortgage Conduct of Business (MCOB) rules. The Charter sits on top of these rules, rather than replacing them.
UK Finance, which represents the lending industry, helped get lenders onboard.
Since the Charter has been up and running, the FCA has also published data showing how many customers are using Charter support. This helps track how well the measures are working.
What support does the Mortgage Charter offer?
The Charter gives homeowners several practical options if they need help with their mortgage. They’re designed to help with mortgage payments when things feel tight, or to help you decide what to do at the end of a fixed rate deal. These measures are temporary, flexible, and easy to access.
Locking in a new deal up to six months before your fixed rate ends
You can book a new rate with your current lender up to six months ahead. This helps you plan ahead and avoid being pushed onto your lender’s (usually higher) standard variable rate (SVR).
If rates fall before your deal starts, you can usually switch to a better one. This is a handy way to lock in a mortgage rate early and avoid a nasty surprise. A win-win!
Switching to a better like-for-like deal before your new one starts
Say you’ve booked a new rate and then your lender launches a better one. You can ask to move to it, as long as it’s like-for-like, without a new affordability check. That means the same type of deal, with the same term and the same kind of features.
Switching to interest-only payments for six months
You can ask to temporarily switch to an interest-only mortgage for six months. You’d pay just the interest, so your monthly payment drops, which can ease the pressure while you get back on track. No need for an affordability check and no impact on your credit file – so no stress. After six months, you’ll go back to your normal repayment mortgage. However, it’s worth noting that your repayments will be higher than before you moved onto interest-only repayments. That’s because you weren’t actually paying anything off in that six-month period.
Extending your mortgage term, with the option to switch back within six months
You can ask to stretch your mortgage over a longer term. A longer term means smaller monthly payments (but you’ll pay more interest overall). If you want to go back to your original term, you can do that within six months.
This is a great option if you need temporary relief but don’t want to commit to a long-term change.
No repossession within a year of your first missed payment
Under the Charter’s mortgage repossession rules, lenders have agreed not to take your home back within 12 months of your first missed payment, except in ‘exceptional’ circumstances. That gives you time to talk to your lender and agree a plan.
Who does the Mortgage Charter apply to?
Residential mortgage customers
The Charter covers ‘regulated residential’ mortgages. That’s the mortgage on the home you live in. There are a few conditions though – we’ll go through them.
Borrowers who are up to date with their payments
Most Charter options (like switching to interest-only or extending your term) are available only if you’re up to date with your payments when you ask. That’s why it pays to act early.
If you’ve already missed a payment, don’t worry. Your lender still has to treat you fairly, and there’s help available (more on that below).
Does it apply to buy-to-let mortgages?
No, the Charter doesn’t apply to buy-to-let mortgages. It’s designed to help residential borrowers only. Worried about paying your buy-to-let mortgage? Your lender will still be keen to help you and will talk you through your options.
Does it apply across the whole of the UK?
Yes. The Charter covers owner-occupiers in England, Scotland, Wales and Northern Ireland, as long as your lender has signed up.
Which lenders have signed the Mortgage Charter?
As of October 2026, 47 lenders and financial institutions have signed the Mortgage Charter. This includes many of the UK's largest banks and building societies, as well as specialist lenders and a credit union.
This list covers about 90% of the UK mortgage market, so your lender is probably on there. The list can potentially change though, so it’s always worth checking out the full up-to-date list on the GOV.UK Mortgage Charter page.
What if your lender hasn’t signed the Charter?
Don’t panic. Lenders who haven’t signed still have to follow FCA rules, and many offer similar help. Get in touch with them and ask what’s available. A mortgage adviser can also point you in the right direction.
What to do if you’re struggling with your mortgage payments
If you’re struggling to pay your mortgage, you have options, and help is closer than you might think.
Contact your lender as soon as possible
This is the most important step. Your lender wants to help, and the earlier you speak to them, the more they can do. Tell them what’s changed and ask about Mortgage Charter options.
Here’s some good news – seeking support and talking to your lender won’t affect your credit score.
How switching to interest-only or extending your term affects the total you pay
Both options reduce your monthly payments, which can be a big help if times are a bit tight. There are a few things to bear in mind:
Interest-only. Lower payments now, but you’re not reducing your balance.
Term extension. Lower payments now, but you’ll pay more interest overall.
An adviser can crunch the numbers and help you understand the long-term impact. They can also help you review things when your finances have settled down.
Will using the Charter affect your credit file?
So, does the Mortgage Charter affect your credit score? No, it doesn’t. Under the Charter, using these options won’t harm your credit score. That’s one of the key points of the Charter.
Where to get free help
You’re not on your own. These free, impartial services are there for you:
MoneyHelper: government-backed guidance on money and mortgages
Citizens Advice: practical help with debt and budgeting
StepChange: help with debts and money management
Ready to chat? Our advisers are ready to call you back today. The first chat costs nothing and is totally free of obligation.
Something to bear in mind...
Mortgage Charter FAQs
No. You don’t need to miss a payment to get help. In fact, the Charter is built for people who are up to date with payments, but worried. Speak to your lender early.
Contact your lender straight away. They must treat you fairly under FCA rules and should talk through your options, such as a payment plan. If you’re in mortgage debt, free advice from MoneyHelper or Citizens Advice can help too.
No. A Mortgage Charter switch to interest-only for six months won’t affect your credit score.
Yes. Lenders reaffirmed it in March 2026. The Charter is a voluntary agreement, but it covers around 90% of the market.
Yes, the Charter applies to remortgaging too. It can be easier to switch deals with your current lender though. If you want to move to a new lender, you’ll go through their usual checks. A mortgage adviser can compare both routes for you.