Help with rising mortgage costs

Get support from us when your client is struggling. We do this in partnership with the Mortgage Charter.

The Mortgage Charter is a set of standards to help with rising mortgage costs

Lenders like us, the Financial Conduct Authority and the government have worked together to support your residential mortgage clients in paying their mortgage.

If your client is affected by higher mortgage repayment costs, we'll make sure they get extra support.

We're giving this support to all our residential mortgage customers. Please note, the Mortgage Charter doesn’t extend to Buy to Let properties.

How the Charter can help

  • Advice – If your client is worried about their mortgage repayments, they can contact their lender for advice. If their mortgage payments are up to date, there’ll be no impact on their credit file.

  • Switching – If their mortgage payments are up to date, your client can switch to a new mortgage deal at the end of their current deal instead of a standard variable rate (SVR) mortgage. There will be no need for another affordability check.

  • Information – Your client will get information in good time before their current rate comes to an end, to help them plan.

  • Support – If your client is struggling with their mortgage payments we will offer them support to pay off their mortgage alongside other financial commitments.

  • Options – Your client also has the option to extend their mortgage term or switch to paying interest only. Both of these options need a lot of consideration as they will have an impact on your client's mortgage.

Coming to the end of your client's current deal

Switching your client's deal

Any time in the 90 days before the end of your client's deal, they can choose a new product from our existing customer range. That new rate will begin when their current deal ends.

What if rates fall after my client has chosen a deal?

Your clients can request to switch to a new rate, on a like-for-like basis, up to 14 calendar days prior to their new deal starting. It’s important to note, only the rate can change. Everything else must remain the same.

Here's an example of a change your client could make:

  • Your client's chosen deal: 2 year Fixed at 75% LTV with £995 fee at 6.99%.
  • Is replaced with: 2 year Fixed at 75% LTV with £995 fee at 6.49%.

A new Switch Product Request Form must be completed by you or your client once a transfer product has been booked.

Please note:

  • If a new product is chosen, we’ll cancel the existing product and issue new offer documents. If the original product transfer was submitted and accepted through the online product transfer portal, your client will not need to return the offer acceptance form in order to accept the revised offer.
  • If the previous product transfer was not submitted via the online product transfer portal, the customer will need to return the offer acceptance form before the current product maturity date.
  • We won't communicate any subsequent rate changes to your clients.
  • You must have the consent of all parties before submitting a new form.

Your client's mortgage options

If your client is up to date with their mortgage payments, they can either switch to an interest only mortgage or extend their term.

Swapping to interest only

  • Your clients who are up to date with current mortgage payments, can request a temporary switch to Interest Only for 6 months, without an affordability check or impacting their credit file.
  • At the end of the 6 months period, clients who have maintained their payments will be automatically converted back to capital repayment.
  • Requests for a repayment type change, outside of the temporary 6 months covered by the Charter, must follow the standard process.
  • You must have the consent of all parties before submitting the new online form.
  • The online form must be completed by you or your client.
  • Under the Mortgage Charter, an Accord colleague will call the customer to outline the risks and costs, including payments, before completing the transaction.
  • A switch to interest only is made on an informed choice basis. We will process the request based on the information you've given.
  • Make your client aware their mortgage will switch back to a capital repayment mortgage after 6 months. At this time, their mortgage payments will be recalculated. Assuming there are no other changes, their payments will increase.
  • There is no guarantee interest rates will be lower, or the housing or financial markets will improve. Your client could end up in a worse position than they are in now.
  • They will continue to be charged interest on their outstanding loan. Without capital repayments reducing their mortgage balance they will pay more interest and increase the total overall cost.
  • We cannot guarantee further extension on an interest-only basis past the agreed extension period.
  • They must continue their agreed monthly mortgage payments. Any missed payment could affect the agreed arrangement.
  • If they have any financial difficulty, there may be better options. Please contact us to discuss.
  • If your client's circumstances change, it’s important they contact us so we can support further.

Extending your mortgage term

  • Clients who are up to date with mortgage payments, can request to extend the term of their mortgage to help reduce monthly payments.
  • No affordability checks are required and there’s no impact to their credit file.
  • Requests for term extensions, now allowed under the Charter, should follow the current standard process using the Type Term Change application form.
  • Clients who have requested a term extension under the Charter can switch back to their original term within 6 months of their request. This will be completed without affordability checks.
  • Any requests to reduce the term outside of 6 months will be dealt with under the standard process and affordability checks will be undertaken.
  • You must have the consent of all parties before requesting a term extension.
  • If you'd like to arrange a term extension, please follow the existing process below.

Important information

  • By changing to a temporary interest only mortgage or extending your client’s mortgage term they will pay more interest and increase the total overall cost.
  • If there are no other changes made to your client’s mortgage, their repayments will increase when they are recalculated.
  • If your client extends their mortgage term past their retirement age, we may need to run affordability and credit checks.
  • If your client changes their mortgage term back within 6 months, there’ll be no affordability check. It won’t affect their credit score.

If your client can afford their existing mortgage payments, they should think carefully before making these changes and consider the longer-term cost on their mortgage.

Important information about the
impact of switching to temporary interest only

If you are considering changing your repayment mortgage to an interest only mortgage for a temporary period of six months, it is important that you understand the following information:
  • Your mortgage will automatically switch back to a repayment mortgage once the agreed six-month period has ended. At this time, your mortgage payments will be recalculated and assuming there are no other changes, your payments will increase.
  • There is no guarantee that interest rates will be lower, or the housing or financial markets will have significantly improved, and you could end up in a worse position than you are in now.
  • You will continue to be charged interest on your outstanding loan. Without capital repayments reducing your mortgage balance, you will pay more interest and increase the total overall cost.
  • Where you have the means to maintain your repayment mortgage payment and reduce the capital element, you should seriously consider doing so.
  • We cannot guarantee any further extension on an interest only basis past the agreed extension period, even if your position has deteriorated.
  • You must continue to maintain your agreed monthly mortgage payments and any missed payment could affect the arrangement which has been agreed.
  • If you are experiencing any financial difficulty, there may be more suitable options available. Please contact us to discuss.
If your circumstances change, it’s important that you contact us as soon as possible so we can support further.

Please choose from the following options

So we can direct you to the right part of our website, please select from the login options below:

Porting? Additional Lending? No need to log in, please click, Porting or Additional Lending  to follow the correct application steps.

NEW BUSINESS - ACCORD MSO

To create an illustration, submit a DIP, upload documents or to track an application for new customers:

ONLINE PRODUCT TRANSFERS

Switch existing Accord clients to a new deal - create an illustration, then apply and accept a product transfer online: