Notices

Mortgage Charter information

Find out what the Mortgage Charter is, and the measures we've put in place to help our borrowers if they experience financial difficulty.

The Mortgage Charter

Family Building Society, alongside many other UK lenders, has signed up to the Government's new Mortgage Charter to help owner occupier mortgage customers worried about making their monthly mortgage payments.

We have always strived to provide our customers with options to help if they are struggling to make their mortgage payments. The following information outlines the further options that will be available under the Mortgage Charter, and details how we can help you.

Please note: These options will reduce your monthly costs for a short period, but they will result in you incurring additional interest overall when compared to leaving your mortgage 'as is'.

Full details of the Mortgage Charter can be found here on the Government's website.

Owner Occupier customers who are currently up to date with all their payments, and are not receiving help under forbearance. The Mortgage Charter does not apply to customers with a Buy to Let mortgage. 

If you are entitled to get help we will be able to help you in two ways;

  • Switch to Interest-Only payments for up to six months
  • Extend the term of the mortgage for up to six months

Important note: Whilst these options will reduce your monthly costs for a short period they will result in you incurring additional interest overall when compared to leaving your mortgage 'as is'. 

Contacting us to talk about the options available will not impact your credit score.

Both of the options available can be taken without the need to check your income and outgoings, and without affecting your credit score.

Payment holidays are not one of the options under the Mortgage Charter. A payment holiday will affect your credit score.

If you wish to find out more about payment holidays you can call us on 03330 140146.

Mortgage charter table v4

Mortgage Charter request form

If you would like to temporarily change your mortgage to Interest-Only or extend your mortgage term, please complete the following form and we'll respond to you with an illustration of what this means for you as soon as we are able to. 

Mortgage Charter request form

Payment holiday request

This is not covered under the Mortgage Charter, so this will affect your credit rating. You will also be required to do an affordability assessment. If you wish to find out more please call us on

03330 140146

How will these options affect my mortgage payments?

We have given some approximate examples below to help highlight how each of the options available under the Mortgage Charter is likely to affect your payments.

 

Scenario 1 - You borrowed £200,000 at a rate of 6.00% over a period of 15 years.

Your monthly mortgage payments would be: £1,687.71

If you elected to switch to Interest-Only for six months, as set out by the Mortgage Charter, your reduced monthly payments would be: £1,000.00

When you revert back to your original mortgage agreement after a period of six months your payments would be: £1,723.72

Scenario 1(b) - You took out the same mortgage as Scenario 1, but have only two years remaining on the term with a balance of £38,080.

Your monthly mortgage payments would still be: £1,687.71

If you switched to Interest-Only for six month your reduced monthly payments would be: £190.40

When you revert to your original mortgage agreement after a period of six months your payments would be: £2,217.44

Scenario 2 - You borrowed £200,000 at a rate of 6.00% over a period of 15 years.

Your monthly mortgage payments would be: £1,687.71

If you elected to extend your mortgage term by 5 years for six months your reduced monthly payments would be: £1,432.86

When you revert back to your original mortgage agreement after a period of six months your payments would be: £1,701.06

Scenario 2(b) - You took out the same mortgage as Scenario 1, but have only two years remaining on the term with a balance of £38,080.

Your monthly mortgage payments would still be: £1,687.71

If you switched to Interest-Only for six month your reduced monthly payments would be: £556.29

When you revert to your original mortgage agreement after a period of six months your payments would be: £2,088.00

 

Important note: As the above examples illustrate, whilst these options will reduce your monthly costs for a short period they will result in you incurring additional interest overall when compared to leaving your mortgage 'as is'. 

For example, if you followed Scenario 1 you would pay an extra £2,139.48 in interest over the term of the mortgage.

Frequently asked questions

The Mortgage Charter only applies to customers who are up to date with their mortgage payments. If you've already missed a payment, one of our arrears experts will have been in touch to discuss your options and to offer help. If you have not engaged with us, we urge you to do so as soon as possible, as this will increase the options available to us to help you.

Telephone: 03330 140146

Email: mortgage.service@familybsoc.co.uk

It's always our intention to work with you and provide options to keep you in your home, so if you're experiencing difficulties please contact us as soon as possible to ask for help.

As part of the Mortgage Charter we have agreed not to force any of our customers to leave their homes without their consent within 12 months of missing their first payment.

There are some exceptional circumstances, including:

  • when the property is vacant, the customer is deceased or the customer voluntarily seeks to proceed
  • where there is detriment to the customer in remaining in the property
  • where there are vulnerabilities such as domestic or financial abuse, threat to life, severe health.

 

We already offer a 'Product Switch Promise' which means we will;

  • send you a list of our current mortgage products 3 months before the end of your existing product
  • guarantee availability of those new products for 28 days even if they're withdrawn for new customers in that time
  • proactively contact you to see if you have questions. 

Plus, if you select a new product and send us back your signed acceptance, you will still be able to switch to a cheaper equivalent product if we launch one before your new product starts.

To find out more about our 'Product Switch Promise' you can contact us on;

Telephone: 03330 140146

Email: mortgage.service@familybsoc.co.uk

 

 

The simple answer is no. In fact, the sooner you contact us for help the more options we may have to help you.

Telephone: 03330 140146

Email: mortgage.service@familybsoc.co.uk

If you are struggling, you will also find useful information on managing debt and mortgage payment difficulties at www.moneyhelper.org.uk