Mortgages: Interest Rates

(asked on 3rd July 2023) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will have discussions with mortgage providers on the potential merits of allowing their customers to adjust their fixed rate mortgages before their term has expired.


Answered by
Andrew Griffith Portrait
Andrew Griffith
Minister of State (Department for Science, Innovation and Technology)
This question was answered on 10th July 2023

On Friday 23 June the Chancellor met with the UK’s largest mortgage lenders, UK Finance and the Financial Conduct Authority to discuss how lenders will provide support for those who encounter problems keeping up with their mortgage payments. At this meeting, lenders agreed to a new Mortgage Charter to support borrowers struggling with their mortgage payments that was published on 26 June. The Charter sets out the standards signatory lenders will adopt when helping their customers, including new flexibilities to help customers manage their mortgage payments over a short period.

Amongst these new flexibilities, the Mortgage Charter includes an agreement permitting borrowers coming to the end of their deal to lock in a new rate up to six months in advance of their deal coming to an end, and apply for a better rate if one becomes available.

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