HSBC, TSB, and NatWest have announced temporary interest-only mortgage options for customers as part of their commitment to the mortgage charter.
Announced recently, all three banks will allow customers to switch their mortgage to an interest-only model for six months, which could help to reduce monthly payments, if they reach each bank's criteria.
HSBC customers will have to have a capital repayment mortgage to apply while NatWest customers will need a residential mortgage that is up to date with its repayments.
TSB will also require customers to be up to date with their mortgage repayments.
Mortgage term extensions were also mentioned by the providers, with all three allowing customers to temporarily extend the term of their mortgage, which could help reduce their monthly payments.
A commitment against house repossession was also mentioned by both NatWest and TSB, both of which made clear that customers would not have their homes repossessed if it has been less than 12 months since their first missed payment.
TSB stated: "No lender wants to repossess someone’s home, and it’s only done as a last resort or if it’s in the financial interests of the borrower."
Additionally, HSBC spoke on the virtue of reviewing the mortgage rate to assess for customer suitability, pointing out that a mortgage is usually the biggest household expense and is therefore worth reviewing its details to make sure it still suits the needs of the customer.
HSBC UK head of mortgages, Andrew Matson, commented: “HSBC UK is here to support our customers through cost of living challenges
"We’re fully committed to delivering the standards set out by the mortgage charter, putting consistent support within closer reach of those customers who need it most."
Matson also explained that the mortgage charter aims to provide flexible support for mortgage customers and seeks to help them understand about the support available.
The charter additionally seeks to reassure customers they can contact their mortgage provider to discuss their money worries without it affecting their credit record.
“While every customer’s situation is different, we have a range of tailored options that we can use to help them find their way through,” he added.
Last month (June 27), more than 30 lenders, collectively responsible for approximately 85 per cent of the mortgage market, became signatories to a government charter to support mortgage borrowers.
The UK’s largest mortgage lenders and the Financial Conduct Authority agreed with the chancellor a set of standards that they will adopt when helping residential mortgage borrowers who could be worried about higher rates.
tom.dunstan@ft.com
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