It aims to provide clarity and reassurance to borrowers worried by high interest rates
The Nottingham Building Society has joined other lenders who have signed up to the new Mortgage Charter, which provides a set of universal standards to help and reassure borrowers worried by high interest rates.
“This is a worrying time for many borrowers as the impact of successive base rate rises has put increasing pressure on household finances,” said Sue Hayes (pictured), chief executive at the Nottingham Building Society. “We want to do everything we can to support customers through this period.
“While we have a range of support measures in place already, the new mortgage charter aims to provide further clarity and reassurance. We are pleased to be part of this unified approach.”
The charter, which was announced by HM Treasury on Monday, was created following meetings in December and June with principal mortgage lenders who have agreed to set out the commitments they make to their regulated residential mortgage borrowers.
Today Chancellor @Jeremy_Hunt announced the Mortgage Charter in the @HouseofCommons.— HM Treasury (@hmtreasury) June 26, 2023
This is a set of commitments agreed with lenders that will help those who are currently struggling with their mortgage rates.
To read the charter and find out more – click the video below ⬇️
“These measures should offer comfort to those who are anxious about high interest rates and support for those who do get into difficulty,” Chancellor Jeremy Hunt stated in the introductory part of the charter. “As we have consistently shown through the pandemic, and the consequences of the war in Ukraine, we will always be on the side of households.”
Lenders representing around 85% of the mortgage market have already signed up to the new mortgage charter.
“Lenders recognise and understand this is an anxious time for mortgage customers, and there is a lot of support available,” said David Postings, chief executive at UK Finance. “Lenders have been contacting and supporting millions of customers and are working with the government and regulators to continue to deliver a range of support options for customers.”
Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), added that the charter builds on the work they and lenders have done over recent years to ensure those who get into difficulty receive the support they need.
“The additional commitments from signatories provides customers with clarity and certainty on how they can expect to be treated,” he said. “Mortgages remain a priority for the FCA, and we will continue to work closely with lenders to ensure borrowers are supported, as part of our work on consumers who might face financial difficulties.”
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