If you have been keeping an eye on the news lately, you may have heard mention of the Mortgage Charter [1] But what exactly is it, and more importantly, how could it help you if you are feeling the pinch of rising living costs or interest rates?
At Yes Mortgage Services Limited, we want to make sure you have the facts. The Charter is a voluntary set of standards agreed between the UK Government, the Financial Conduct Authority (FCA), and the UK’s largest mortgage lenders. Its goal is simple: to provide extra flexibility and reassurance to homeowners during periods of economic pressure. Currently, lenders representing approximately 90% of the mortgage market have signed up to these commitments. [2]
Who is Covered by the Charter?
The Charter applies to residential mortgages (the home you live in) with lenders who have signed up to the agreement. According to UK Finance (2026), [3] there are currently 49 signatory lenders, including the UK’s largest banks and building societies.
It is designed for borrowers who are up to date with their payments. If you have already missed a payment or are in arrears, your lender still has a duty to help you under existing FCA rules, but they will likely offer “tailored support” instead of the specific Charter options listed below.
Three Ways the Charter Could Help You Today
If your finances are feeling stretched, the Charter offers three main “safety nets” that you could explore:
1. A Temporary Switch to Interest-Only
You could choose to pay only the interest on your mortgage for six months. This reduces your monthly outgoings because you aren’t paying back any of the original loan (the capital) during this time.
- The Benefit: It provides immediate breathing space in your monthly budget.
- The Catch: Your mortgage balance won’t reduce during these six months, and your payments will be slightly higher once you switch back to a full repayment basis.
2. Extending Your Mortgage Term
You could extend the length of your mortgage (for example, moving from a 20-year term to a 25-year term) without a full affordability check.
- The Benefit: Spreading the debt over a longer period reduces your monthly commitment. Under the Charter, you also have the option to revert to your original term within six months if your circumstances improve.
- The Catch: A longer term means you will pay more interest over the total life of the mortgage.
3. Locking in a New Rate Early
If your current deal is ending soon, you could lock in a new rate with your existing lender up to six months in advance.
- The Benefit: It gives you certainty. Even better, the Charter allows you to request a lower “like-for-like” rate if your lender’s prices drop before your new deal actually starts.
Will These Options Affect My Credit Score?
This is the question we hear most often. Under the Mortgage Charter, if you are up to date with your payments, simply talking to your lender about these options should not negatively affect your credit score.
Next Steps
The Mortgage Charter is a helpful tool, but it is not the only solution. As a broker with access to a comprehensive panel of lenders, we could help you look at the bigger picture to see if a product transfer or a move to a new lender would be more cost-effective for you in the long run.
Contact us today to book an appointment.
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. All information is correct as of the publish date: 4th March 2026. Please be aware that by clicking on to any of the links within this article you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
[1] GOV.UK. (2026). Mortgage Charter: support for residential mortgage borrowers. [online] Available at: https://www.gov.uk/government/publications/mortgage-charter
[2] FCA. (2025). Mortgage Charter uptake data. [online] Available at: https://www.fca.org.uk/data/mortgage-charter-uptake
[3] UK Finance. (2026). FAQs on the Mortgage Charter. [online] Available at: https://www.ukfinance.org.uk/policy-and-guidance/guidance/faqs-mortgage-charter
At Yes Mortgage Services, we offer a comprehensive range of products from across the market.
Irrespective of whether you are looking to buy a new home, re-mortgage an existing property, or looking to protect your family from the unpredictability that life throws at it or protect your income if you are unable to work due to accident or ill health.
Yes Mortgage Services are committed to offering you the highest possible standards of service. We can undertake the whole process from answering the initial questions through to handling multiple product applications. Ensuring that everyone gets treated with the same urgency and maintaining your best interests are our main goals irrespective of the value of the mortgage.
We recognise that both we and our customers have everything to gain if we look after your best interests and treat you fairly in all aspect of our dealings with you.
