Alongside our full range of existing support, we’re also a signatory to the Government’s Mortgage Charter. This gives your clients more ways to manage their payments if they’re concerned about rising mortgage rates or struggling to keep up payments on their current mortgage.
Your client can:
- Secure a new product up to six months before maturity: Under the Mortgage Charter scheme, your client can secure their next mortgage product up to six months before their current product ends. They can also change their mind up to 14 days before maturity if a more suitable option becomes available. If your client wants the new rate to start as soon as possible, they can request the new product to begin up to three months before maturity without ERCs. The product transfer request must be secured at least two weeks before the end date.
- Temporarily change to Interest Only: They can choose to pay just the interest on their mortgage for six months.
- Extend their current mortgage term to lower monthly payments: They can return to their original term within six months if they choose. The term must not exceed our maximum of 40 years (or 35 years for clients on our First Step (up to 98% LTV) product. Under the Mortgage Charter, it must not run beyond age 70 (or the client’s expected retirement age, if earlier)
If a client selects a term that goes beyond their retirement age, our Mortgage Advice Team will need to carry out an affordability assessment.
None of the options available under the Mortgage Charter will affect your client’s credit file.
How your client can request these changes
If your client wants to make a Mortgage Charter request, they can submit a form through our mortgage payment options page. This won’t affect your role in any product transfer.
If you or your client have any questions, contact us on 0345 601 0014 (Monday to Friday, 9am to 5pm) or email mortgage.services@newcastle.co.uk.
Calls to 03 numbers cost the same as a standard landline call and are included in your mobile or landline minutes.
You’ll find answers to the most common Mortgage Charter questions below.
What is the Mortgage Charter?
The Mortgage Charter is an agreement between lenders, the Financial Conduct Authority, and the Government, which permits customers to switch to an interest only mortgage for six months or extend their mortgage term to lower their monthly payments and switch back to their original term within the first six months. Both options can be taken without a new affordability check or affecting their credit file. In addition, from 26 June 2023, customers won't be forced to have their homes repossessed within 12 months from their first missed payment.
Who is able to take up the Mortgage Charter?
UK residential mortgage customers, who are up to date with their mortgage payments, are eligible for the Mortgage Charter.
Who is excluded from the Mortgage Charter?
Customers with accounts in Gibraltar and Jersey, or who meet the following criteria: currently in arrears, have a buy to let or equity release product, have bridging or second charge loans, or have less than 12 months remaining on their mortgage term are excluded from the Mortgage Charter.
My client's mortgage has expired and would like to go on interest only for six months or consider a term extension, what do I do?
The product transfer and six months' interest only, as part of the Mortgage Charter, will work independently of each other. You can complete the product transfer with your recommended product, and your client can submit a form through our mortgage payment options page with their Charter needs, either six months interest only, or a term extension. Our commitment to support the Mortgage Charter is to help our customers who need some extra support and this is separate from any broker advice in relation to the product transfer.
Where will my client find out how much everything will cost?
If you are completing a product transfer, the illustration you create through your preferred sourcing system will confirm the new monthly payment. If any part of the mortgage has a variation through the Mortgage Charter, we will give your clients all the details they will need to make the right decision for them and confirm any new monthly payment.
How will my client's credit file be affected by choosing interest only or a term extension?
As part of our pledge and commitment to support the Mortgage Charter, your client's credit file will not be impacted by going on to interest only for six months or extending their mortgage term to lower monthly payments as part of the Mortgage Charter.
I am going through my mortgage maturities; what can I advise my clients?
The product transfer will not be affected if your client is thinking about making any changes as part of the Mortgage Charter, and you will be able to advise your client based on their circumstances and the product you recommend. If your client would like more details about the Mortgage Charter, they will be able to find more details on the Gov.uk website.
How early can I do a product transfer?
Under the Mortgage Charter scheme, your client can secure their next mortgage product up to six months before their current deal ends. They can also change their mind up to 14 days before the end date if a more suitable option becomes available.
Around 16 weeks before the product end date, we’ll write to your client with their unique reference code, and email you a list of your clients whose products are coming to an end so you can contact them in good time. Where a transfer can be completed on our online portal, your email will also include the client’s unique code.
If your client wants the new rate to start as soon as possible, they can ask for the new product to begin up to three months before the deal ends without ERCs. The product transfer request must be submitted at least two weeks before the product end date.
Please note: While this six month window is supported under the Mortgage Charter, our standard product transfer journey begins around 16 weeks before the product end, when we issue the unique reference code.
See our product transfer page for more information.
Do I still get a procuration fee if my client does a product transfer and extends the term under the Mortgage Charter?
You will get a procuration fee of 0.30% for the product transfer. There are no procuration fees payable for any Mortgage Charter changes. For your client to have any variation to their mortgage under the Mortgage Charter, they will need to visit mortgage payment options on our website and submit a form with what they need. We are happy for you to complete the product transfer independent of any changes under the Mortgage Charter.
What if I chose a rate for my client, and the rates go down?
Under the Mortgage Charter scheme, your client can secure their next mortgage product up to six months before their current deal ends.
Your client can change their mind up to 14 days before the end date if a more suitable option becomes available before completion, you can change the product by following the steps under ‘Change a product already in place’ on our product transfer page.
If your client wants the new rate to start as soon as possible, they can ask for the new product to begin up to three months before the deal ends without early repayment charges. The product transfer request must be submitted at least two weeks before the end date.
Our products change regularly. Rates can go up or down, and products may be withdrawn at short notice.
What will happen if my client would like to have interest only longer than the initial six months?
Under the Mortgage Charter, we can only offer six months on interest only with no affordability or additional checks.
If after six months of interest only your client is still struggling, they will need to speak to our Mortgage Support team on 0345 702 3083 (available Monday to Friday, 9am to 5pm) about the options available to them.
Is there any information I can give my client about the Mortgage Charter?
Information about the Mortgage Charter and our support can be found on our mortgage payment options page on the Newcastle Building Society website.
While information on the Mortgage Charter and lenders who have made a commitment to support it, can be found on the Gov.uk website.
Am I able to complete the Mortgage Charter request on behalf of our mutual customer?
No, the client will need to fully complete their request for a mortgage variation. This can be found with all supporting documents on the Newcastle Building Society website.
Will Newcastle Building Society give any advice to our mutual client about the Mortgage Charter?
No, the Mortgage Charter is execution only.
For more information on the government's Mortgage Charter, visit the Gov.uk website.
If your client is struggling with their finances and needs further help from us, further information and support can be found on the mortgage payment difficulties page of our consumer website, including how to access our Helping Hand service. Helping Hand is a partnership with Citizens Advice Gateshead to deliver a dedicated service for our members allowing them to access free expert advice and support if they need help.
If you have any questions or would like to discuss a case, please talk to your BDM or contact the Intermediary Support Team at Intermediary.lending@newcastle.co.uk.
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Available across the UK, your dedicated Business Development Manager (BDM) is ready to give expert advice on your product, criteria, or application questions.
Intermediary Support Team
For enquiries, live case support, or document submissions, our Intermediary Support Team is available from 9am to 5pm, Monday to Friday. You can contact them by:
- Phone: 0345 602 2338
- Email: intermediary.lending@newcastle.co.uk