Chancellor urges major banks to boost mortgage support

Chancellor Rachel Reeves met on Thursday with six of the UK’s biggest banks and building societies, as well as the UK Finance and Economic Secretary, to assess the impact of the conflict on households and small businesses in Iran.

The lenders agreed to contact around 1.6 million customers whose fixed-rate mortgage deals are due to end at the end of this year, outlining the options available and access to support ahead of any changes to repayments. The Chancellor also confirmed the Mortgage Charter, which allows borrowers to secure a new rate up to six months in advance or change deals with their existing lender without new affordability checks.

The charter also includes temporary measures such as switching to interest-only payments for up to six months, with support discussions not affecting credit scores. Lenders have reported an increase in customer enquiries, although data indicates that lending has remained stable and outstanding remains low.

With approximately 86% of mortgages being at fixed rates, most borrowers are not immediately exposed to short-term market fluctuations

Reeves commented: “In uncertain times, people need clear reassurance and practical help. That’s why I’ve brought together the biggest lenders to step up support and ensure anyone who is concerned can quickly access mortgage charter options, without impacting their credit score.”