What is the Mortgage Charter? (and how it can help during a remortgage)

The UK Mortgage Charter is a voluntary agreement designed to give homeowners extra flexibility when economic pressures make mortgage repayments harder to manage. It sets out commitments from participating lenders, agreed with the UK Government and the Financial Conduct Authority (FCA), to help borrowers who are facing short-term strain.

For homeowners, the Charter can be particularly relevant around product end dates, remortgage planning, or when a new interest rate is about to take effect—because those are common moments when monthly payments can change.

What the Mortgage Charter is (in plain English)

The Mortgage Charter is a set of standards that participating lenders sign up to. The intention is to provide a clearer, more consistent approach to support, so that borrowers who are not in arrears can explore specific options without having to start from scratch.

It is important to note:

• The Charter is voluntary, but it is backed by commitments from signatory lenders.
• It does not replace the FCA’s existing rules on treating customers fairly.
• It is aimed at borrowers who are up to date with their mortgage payments.

Who is covered by the Mortgage Charter?

The Charter applies to residential mortgages with lenders that have signed up to the agreement.

In practice, it is most relevant if:

• your mortgage is for the home you live in
• you are maintaining payments (i.e., you are not already in arrears)
• you are experiencing pressure due to changes in costs or interest rates

If you have missed payments or are in arrears, your lender still has duties under FCA rules, but the specific Charter options may not be the same as those available to borrowers who are up to date.

The three main support options under the Charter

The Mortgage Charter sets out three key “safety nets” that borrowers can ask about. Availability can depend on your circumstances and your lender’s processes, but these are the headline options.

1) A temporary switch to interest-only

Under the Charter, you may be able to switch to interest-only payments for up to six months.

How it can help:

• Your monthly payment can reduce because you are not repaying the loan balance during the interest-only period.

What to consider:

• The mortgage balance does not reduce during the switch.
• When you return to repayment, your payments are likely to be higher than they were during the interest-only period.

2) Extending your mortgage term

Another option is to extend the length of your mortgage. For example, moving from a 20-year term to a 25-year term.

How it can help:

• Spreading repayments over a longer period can reduce the monthly amount you pay.

What to consider:

• Extending the term typically increases the total interest paid over the life of the mortgage.
• While this can ease cash flow, it may not be the lowest-cost solution overall.

3) Locking in a new rate early (up to six months)

If your current deal is ending soon, the Charter may allow you to lock in a new rate with your existing lender up to six months in advance.

How it can help:

• You can gain payment certainty earlier, which may make budgeting easier.

What to consider:

• The exact pricing and how it applies to your mortgage depends on your lender’s arrangements.
• If rates move again, the Charter includes a mechanism intended to support “like-for-like” pricing where applicable.

Will the Mortgage Charter affect your credit score?

A common concern is whether discussing or using Charter options will harm your credit file.

For borrowers who are up to date with payments, simply speaking to your lender about Charter options is generally not expected to negatively affect your credit score.

That said, any changes to your mortgage can involve administrative steps, and the best way to understand the impact in your specific situation is to clarify with your lender what will happen next.

How the Charter fits with remortgaging and product transfers

Even if the Charter provides short-term relief, it can also be a prompt to review your wider mortgage plan:

• If your deal is ending: early rate-locking may help you manage the transition.
• If repayments are becoming tight: a temporary payment change (interest-only) or term extension may create breathing space while you consider longer-term options.
• If you want to reduce costs: a product transfer or remortgage with a different lender may be worth comparing alongside any Charter option.

In other words, the Charter can be a useful bridge—helping you get through a difficult period—while you consider whether a longer-term change is likely to be more cost-effective.

Key takeaways

• The Mortgage Charter is a voluntary agreement that sets out support commitments from participating lenders.
• It is mainly aimed at borrowers who are up to date with their mortgage payments.
• The three headline options are: temporary interest-only, extending the mortgage term, and locking in a new rate early.
• It can be relevant around product end dates and remortgage planning, especially when payments are about to change.

If you are managing a mortgage during economic pressure, understanding what the Charter offers can help you have a more informed conversation with your lender and make clearer decisions about next steps.