--- title: The Mortgage Charter Explained description: Discover how the UK Mortgage Charter helps homeowners manage rising repayments with options like interest‑only, term extensions, and early rate locks. image: https://www.overcomemortgages.co.uk/hubfs/adjusted%20blogger-Oct-09-2025-02-04-03-5698-PM.png --- [Skip to content](https://www.overcomemortgages.co.uk/en/blog/the-mortgage-charter-explained#main-content) [![](https://www.overcomemortgages.co.uk/hs-fs/hubfs/overcome_ai_adjusted-removebg-preview.png?width=285&height=100&name=overcome_ai_adjusted-removebg-preview.png)](https://www.overcomemortgages.co.uk/) Overcome Mortgages Navigation [Home](https://overcomemortgages.co.uk/) [Blog](https://overcomemortgages.co.uk/en/blog) [CEMAP Quiz](https://overcomemortgages.co.uk/cemap-quiz) [CheckMyFile](https://overcomemortgages.co.uk/checkmyfile) [Contact Us](https://overcomemortgages.co.uk/contact-us) [Home](https://overcomemortgages.co.uk/) [Blog](https://overcomemortgages.co.uk/en/blog) [CEMAP Quiz](https://overcomemortgages.co.uk/cemap-quiz) [CheckMyFile](https://overcomemortgages.co.uk/checkmyfile) [Contact Us](https://overcomemortgages.co.uk/contact-us) ![](https://www.overcomemortgages.co.uk/hs-fs/hubfs/adjusted%20blogger-Oct-09-2025-02-04-03-5698-PM.png?width=1239&height=700&name=adjusted%20blogger-Oct-09-2025-02-04-03-5698-PM.png) # The Mortgage Charter Explained ![Isaac Barco](https://7528315.fs1.hubspotusercontent-na1.net/hub/7528315/hubfs/raw_assets/public/mV0_d-cms-elevate-theme_hubspot/elevate/images/avatar-placeholder.jpg?width=48&height=48&name=avatar-placeholder.jpg) Isaac Barco October 22, 2025   With interest rates and household budgets under pressure, the UK Government’s Mortgage Charter has become an important safety net for many homeowners. As a mortgage broker, I work with it regularly — here’s a clear breakdown. **What Is the Mortgage Charter?** Introduced in June 2023 and signed by 49 lenders covering around 90% of the UK mortgage market, the Mortgage Charter is a voluntary agreement between lenders, the Government, and the Financial Conduct Authority (FCA). Its aim is to give borrowers greater flexibility and breathing space if they’re worried about rising repayments — without the usual affordability checks that might otherwise slow down support. What Options Does It Give Borrowers? If you’re up to date with your mortgage payments, you can request: - Switch to interest‑only payments for up to 6 months You’ll only pay the interest due, not the capital, which can significantly reduce monthly outgoings. - Extend your mortgage term Spreading repayments over a longer period lowers monthly payments. You also have the option to revert to your original term within 6 months without a new affordability assessment. - Lock in a new deal early You can secure a new fixed rate up to 6 months before your current deal ends. If a better like‑for‑like rate appears before it starts, you can switch to that instead. This is why we often suggest locking something in as soon as possible — you can always reapply if rates reduce, but if rates increase, you won’t be eligible for past rates.   Who Is It Suitable For? The Mortgage Charter is designed for borrowers who: - Expect short‑term financial pressure (e.g., temporary income drop, higher bills). - Want to avoid arrears while keeping their mortgage on track. - Need time to adjust to higher interest rates or explore longer‑term solutions. Implications of Using It While the Charter offers breathing space, it’s not without trade‑offs: - Paying less now means paying more over the life of the mortgage, your monthly payments increase at the end of the interest only period to make up the difference. - Term extensions mean you’ll be in debt for longer and pay more interest unless you later overpay.   **Key Takeaways** - The Mortgage Charter is a voluntary agreement giving borrowers short‑term relief without affordability checks. - It offers up to 6 months of interest‑only, term extension with reversion option, and locking in a new product within 6 months of expiry. - It is only available if you’re up to date with payments and with a participating lender. - Best for temporary cash‑flow issues, not long‑term affordability problems. - Always weigh the short‑term relief against the long‑term cost.   ## Share this post [mailto:https%3A%2F%2Fwww.overcomemortgages.co.uk%2Fen%2Fblog%2Fthe-mortgage-charter-explained](mailto:https%3A%2F%2Fwww.overcomemortgages.co.uk%2Fen%2Fblog%2Fthe-mortgage-charter-explained) ## Keep reading ### [You can get an interest‑only mortgage without a standard repayment vehicle](https://www.overcomemortgages.co.uk/en/blog/you-can-get-an-interest-only-mortgage-without-a-standard-repayment-vehicle) ### [Worried Your Credit Will Stop You Getting A Mortgage?](https://www.overcomemortgages.co.uk/en/blog/worried-your-credit-will-stop-you-getting-a-mortgage) Overcome Mortgages is a trading name of CS Financial Group Limited, registered in England and Wales. Registered address: 10/12 Woolpack Yard, Kendal, LA9 4NG. Company Registration Number: 10731629. CS Financial Group Limited is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority The information on this website is for the use of residents of the United Kingdom only. No representations are made as to whether the information is applicable or available in any other country which may have access to it. Copyright 2025 Overcome Mortgages [Privacy Policy](https://www.theopenworkpartnership.com/privacy-notice/)· © 2025 Overcome Mortgages. 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