New Mortgage Support for Homeowners in the UK

On the 23rd of June, the Chancellor met with the UK’s largest mortgage lenders, UK Finance, and the FCA to agree to new commitments to support struggling mortgage borrowers.

The following announcement will hopefully provide some assistance and peace of mind to households that are having financial difficulties because of the cost-of-living crisis.

As a result of the charter, lenders have agreed:

  • Anyone worried about their mortgage repayments can contact their lender for help and guidance without any impact on their credit file.
  • Support for customers who are up to date with payments to switch to a new mortgage deal at the end of their existing fixed rate deal without another affordability check.
  • Tailored support for anyone struggling, which could include extending their term to reduce their payments, offering a switch to interest-only payments, but also a range of other options like a temporary payment deferral or part interest-part repayment.
  • From the 26th of June, a borrower will not be forced to leave their home without their consent unless, in exceptional circumstances, in less than a year from their first missed payment.
  • With effect from the 10th of July, customers approaching the end of a fixed rate deal will have the chance to lock in a deal up to six months ahead. They will also be able to manage their new deal and request a better like-for-like deal with their lender right up until their new term starts, if one is available.

In addition, the government says it has delivered action to make Support for Mortgage Interest easier to access. Borrowers on Universal Credit can now receive help with mortgage interest payments after three months.

Lenders who have already signed the charter include the Big Six banks, Virgin Money, TSB, and a host of building societies, which together represent approximately 85% of the mortgage market.

MMPE are also pleased to offer some exciting news for Homeowners. The ability to lock in your mortgage deal in advance using our 4 Simple Steps.

4 simple steps to ensure you get the best mortgage deal when your existing mortgage rate ends.

  1. Get proactive: Speak with a mortgage broker (such as MMPE), ideally from 12 months prior to your product end date and no later than month 7. Get to know and understand.
    • The current market trends.
    • What the future predicts for mortgage rates?
    • If you are in any financial difficulty or need assistance. Discuss options and understand how the UK mortgage charter may help.
    • Understand how mortgage products are funded and timescales for withdrawal of products.
    • MMPE have a 12-month remortgage product if you want to fix it as early as possible.
  2. Get prepared: 7 months prior to your product end date, we recommend making sure that your financial profile, objectives and supporting documents are provided to your broker. Benefits to you are.
    • Research can be provided to you six months before your product ends. This is generally the earliest lenders will accept a remortgage application.
    • If your existing lender has product transfer rates available, we will provide you with research comparing your existing lender versus the open market.
  3. Get locked in: At month 6 prior to product end date. We aim to assist you in locking in your new deal as soon as possible with the most suitable and cost-effective scheme available to suit you.
    • This secures a rate prior to any further potential rate increases.
    • If an improved rate or scheme becomes available, we are still free to switch the deal.
  4. Ongoing reviews: With MMPE, we provide you with an ongoing review service that monitors rates and your options. If a more cost-effective or more suitable scheme becomes available. We will work with you to switch to the new deal.

Preparation & Planning

Take some time to consider your personal situation, your future needs, and requirements. What plans have you with regards to your home for the future, such as:

  • Future home moves
  • Additional borrowing for home improvements or other plans.
  • Future objectives.
  • Scheme type tracker / fixed / flexibility required?
  • Your maximum mortgage budget, with rates having increased, you need to plan for increased monthly mortgage costs.
  • Have you reviewed your expenditure and looked at what non-essential costs can be trimmed down (if required).

Note: Product transfers are not always a suitable option as they may not be the best mortgage product on the market for you. To create real value for clients, MMPE take into consideration each client’s individual circumstances, such as the need for additional borrowing, overall costs etc, which may make remortgaging a better option.

As a broker, we compare and analyse the wider financial position and circumstance. We take into consideration all factors, including equity, your loan to value (LTV), your credit history, and your plans for your home/property. Plus, any additional costs and eligibility for products all play a part.

It might suit you to choose a different lender who may offer a better rate, scheme term or additional borrowing.

Why use a broker as opposed to going direct to your lender?

  • A. As a broker MMPE provide our scheme end review service Free of Charge*
  • B. We help you find the best deal for you; we consider rate/scheme type/options from the whole of the market and your personal requirements.
  • C. We will provide you with ongoing reviews of your product up until completion. If an improved deal becomes available, we will work with you quickly to switch your deal. Dealing directly with a lender generally means they will not tell you if a better deal is released.
  • D. As a broker, we provide you with professional advice, providing a sounding board to research alternative options and, where necessary, can look at considerations such as extending your mortgage term or interest only (for a period) to assist with short-term affordability.
  • E. As a broker, we provide ongoing support, and we schedule your next mortgage review; we work with you to understand your plans and your objectives, giving you greater product options for the future.
  • F. The lender pays us, the broker, for the services provided. Not you.

If you go direct to a lender, the benefits of A, B, C, D, E, and F above are lost. Do not delay your review; it could mean you lose the best deals.Don’t just choose a rate, it may not be suitable, and you will benefit from advice.

In this volatile mortgage market with rates likely to continue to rise, planning ahead, being proactive and getting professional advice could prove invaluable. Equally, planning and the timing of research and applications are often critical.

MMPE are available to help provide advice and support. You benefit from guidance, preparation, and personal research to assist in making a better-informed decision at the right time.

If you are concerned about being able to repay your mortgage in the future, please arrange your mortgage review so that we can provide further guidance.

Please note that we also have availability of a 12-month remortgage product option if you would like to review your options earlier than the 6-month stage. Book a review here.

If you would like assistance, then please book in a no obligation review.

Fee’s & Charges – 95% plus of all reviews are carried out without charging our client a broker fee, as the lender pays MMPE. MMPE, however, reserve the right to charge a fee if you decide to make significant changes to your loan structure, such as extending the term or debt consolidation. Typically, our fee for this service would be £395, and this is discounted to £199 for existing clients. Any fee chargeable would be fully discussed and agreed upon in advance of any application.

No Obligation Review Here

My Mortgage Experts & Protection Experts Ltd (FCA 937076), is an Appointed Representative of King Mortgages Ltd.

King Mortgages is authorised & regulated by the Financial Conduct Authority (FCA). King Mortgages Ltd is entered on the financial services register http://register.fca.org.uk/ under reference number 803561.

The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

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      Automatic Property Value Updates

      Changes in property value, coupled with a potential reduction in your loan amount (with a repayment mortgage), mean a change in the equity available in your property (Loan to Value); hence there could be improved opportunities for a better mortgage for you.

      Product Expiry Date

      Sussed will track when your mortgage is due to expire (usually when your mortgage payments rise substantially as you will automatically transfer to your lender’s standard rate).

      The app will alert you when it’s the right time to discuss your options with your mortgage broker.

      Sussed can help you plan.

      Rate Riser

      This feature is ideal for today’s economy and increasing prices. Sussed will continually scan the market, looking for the best-fixed rates available, especially when interest rates are rising.

      Using a series of algorithms, our clever technology can identify longer-term fixed rates available today that could save money against predicted rates at the end of your current product term (including the cost of transfer) – sussed is doing all the hard work.

      Equity Available

      With automatic property value updates and your Mortgage information loaded, this feature calculates the amount of equity and the maximum potential loan that may be available within a landlord’s portfolio. This will assist with seeing if there is the opportunity for to perhaps buy another property from leveraging your portfolio.

      Within sussed, you will also be able to see each of your properties with a roadside picture, a confirmed property value, monthly rental, current mortgage balance, payments, interest rate and the Loan to value/Gross rental yield.

      Sussed can help you manage your portfolio.

      Early Review

      This feature is there waiting for interest rates when they reduce. Using the same technology as Rate Riser, sussed will identify if your current deal is now able to be improved.

      Should the interest rates decrease, sussed will compare deals available on the day with your existing deal and flag if there is an opportunity for you to save money by switching.

      Regional Price Limits

      There are price limits on homes you can buy with an equity loan. The limit is different for each region in England.

      • East - £407,400
      • East Midlands - £261,900
      • London - £600,000
      • North East - £186,100
      • North West - £224,400
      • South East - £437,000
      • South West - £349,000
      • West Midlands - £255,600
      • Yorkshire and the Humber - £228,100

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