As the Christmas period approaches, household finances often face extra strain. In search of quick relief, many homeowners turn to the internet for ways to manage their outgoings. However, the Financial Conduct Authority (FCA) recently issued a strong warning about misleading information circulating online that could severely worsen a borrower’s financial position.[1]
A concerning number of websites and social media posts are actively promoting so-called “promissory notes”. They falsely claim these notes allow homeowners to completely avoid making their regular mortgage payments. While these claims could appear convincing at first glance, they are unequivocally incorrect and relying on them could lead to serious financial consequences.
What are Promissory Notes, and Why is the FCA Concerned?
The documents being sold often make the following false claims:
- That a ‘trust’ or an unnamed third party will assume responsibility for your mortgage debt.
- That the note itself acts as a full settlement of the mortgage balance.
- That lenders are legally obligated to accept the note as a form of payment.
The FCA has officially confirmed that all these statements are false. A promissory note is not a recognised or legal method of paying off a mortgage in the UK, and sending one to your lender does not remove your legal requirement to make your normal, contractual monthly payments.
Crucially, some individuals have paid substantial amounts of money for these documents, believing they would solve their financial problems, only to discover that they are completely worthless.
The Real Harm of Relying on These Claims
Using a promissory note will not pause, reduce, or settle your mortgage debt. This means that if borrowers stop making their usual payments based on these false claims, they could unknowingly fall into arrears. The consequences of this could include:
- Damaging your Credit File: Arrears will be recorded on your credit history, making it harder to secure credit in the future.
- Increased Debt: The total amount you owe could increase due to fees, interest, and charges related to the missed payments.
- Reduced Future Options: It could limit your ability to remortgage or switch to a better deal in the future.
- Repossession Risk: In the most serious cases, failure to maintain payments could ultimately place your home at risk of repossession.
These schemes are frequently and cynically targeted at homeowners who are already under financial pressure, making an already difficult situation much worse.
Legitimate Steps to Take if You Are Concerned
If you are worried about upcoming mortgage payments, please do not rely on information from unregulated or unverified online sources. There are legitimate, compliant, and practical steps you could take.
1. Contact Your Lender Immediately
Lenders have a duty to treat customers who are experiencing financial difficulties in a fair and considerate manner. Depending on your circumstances, they could explore temporary or longer-term options with you. These are assessed case-by-case and are never guaranteed.
2. Speak to Your Mortgage Broker
If you would like help understanding the information provided by your lender, or if you simply need to discuss your mortgage circumstances more generally, we are here to assist. While we could not make decisions on behalf of your lender, we could help you understand what various options could mean for your long-term finances. We work with a comprehensive panel of lenders and could help you review your existing mortgage arrangements.
3. Consider Free, Confidential Debt Support
If you feel you are under significant financial strain, reputable, independent organisations could offer invaluable guidance on budgeting and overall debt management. These include:
These services are independent and help you review your wider financial position for free.
A Final Reminder for Homeowners
During times of financial stress, the temptation to believe in a simple, instant solution is strong. However, anything that claims to instantly cancel a mortgage or remove your contractual obligation to make payments must be treated with extreme caution.
The FCA has issued a clear warning: promissory notes do not work and could cause significant financial harm.
If you have any questions about your current mortgage or need help understanding the process, please contact us to book an appointment.
Disclaimers:
We do not charge a fee for mortgage advice. Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics, and images, does not, and is not intended to, substitute professional financial advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither Yes Mortgage Services Limited nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
[1] FCA. (2025). Struggling with your mortgage? Avoid risky offers. Available at: https://www.fca.org.uk/consumers/struggling-mortgage-avoid-risky-offers [Accessed 25 Nov. 2025].
[2] Citizens Advice. (2025). Citizens Advice. Available at: https://www.citizensadvice.org.uk/
[3] Citizens Advice. (2025). Citizens Advice. Available at: https://www.citizensadvice.org.uk/
[4] Nationaldebtline.org. (2023). Free Debt Advice and Support | National Debtline. Available at: https://nationaldebtline.org/
[5] MoneyHelper (2025). Free and impartial help with money, backed by the government. Available at: https://www.moneyhelper.org.uk/en
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