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mortgage.charter@aldermore.co.uk
The Mortgage Charter was introduced by the Government in June 2023 and mortgage lenders have agreed to these new commitments to provide support for borrowers during this difficult time. You can apply for one of the options below if you’re worried about making your next mortgage payment and you believe this short term change will help you get your finances back on track.
Your mortgage payments must be up to date to apply. You’ll pay more over the duration of your mortgage.
If you’re not currently up to date with your payments or you need more long term support, please contact us as soon as possible. Our team are here to support you. You can find more information on our money worries page.
If you’re able to continue paying your monthly mortgage payments in full you should continue to do so.
Continue reading to find out about options available to you.
You can apply to switch your mortgage account from capital repayment to interest only for 6 months. This will reduce your monthly payments during the 6 months. As long as you return to making full payments at the end of this time, your credit score won’t be impacted.
Here’s an illustrative example of how this could work, based on a mortgage balance of £100,000, a fixed rate interest of 6%, 10 years remaining on the mortgage account:
The money helper website also offers a mortgage calculator to give you an idea of the monthly payments you’d pay on new mortgages, interest only mortgages and your mortgage if there was an interest rate rise.
If you’re worried about making your next mortgage payment and think this option will help, you can apply using the link below. Once we’ve received your application we’ll assess your mortgage account to make sure you’re eligible to take this option. You don’t need to contact us, we’ll send you a letter to confirm what happens next, including a personalised illustration of the costs.
You can apply to extend the term of your mortgage to reduce your monthly payments. The agreed duration of the term extension will depend on how long you have remaining on your mortgage term and your expected retirement age. You cannot extend the term past your expected retirement age.
If you think this option is right for you, you can submit your application and our team will contact you to give you a personalised illustration and confirm the agreed term extension period. Your credit score won’t be impacted by choosing this option and you’ll continue to make full payments at the end of this time. You can choose to switch back to your original mortgage term within 6 months of the term extension.
Here’s an illustrative example of how this could work, based on a mortgage balance of £100,000, a fixed rate interest of 6%, 10 years remaining on the mortgage account and choosing to extend the term for a further 10 years:
The money helper website also offers a mortgage calculator to give you an idea of the monthly payments you’d pay on new mortgages, interest only mortgages and your mortgage if there was an interest rate rise.
If you are concerned about making your next mortgage payment and think this option will help, you can apply by completing our form. Once we’ve received your application we’ll assess your mortgage account to make sure you’re eligible to take this option. You don’t need to contact us, we’ll send a letter to confirm what happens next, including a personalised illustration of the costs.
Switching to a new rate with us may be an option for you.
You can switch up to 17 weeks before the end of your current rate or your early repayment charge period. We do have some eligibility criteria but all existing customers can be considered for a product switch provided their mortgage payments are up to date with us.
If you’d like to switch, we offer product switches on an ‘execution only’ basis. This means you’re responsible for choosing a mortgage that’s right for you. You won’t receive any advice or a recommendation from us. If you’d like advice and a recommendation based on your needs and circumstances, you can contact a broker who’ll be happy to help you find the right mortgage.
You can find a mortgage broker by searching online or by asking friends or family for personal recommendations. Don’t forget to check they're registered with the FCA. You can do this by searching the FCA register.
Read our switch your mortgage page for more information on how to switch to a new rate with us.
These support measures are only available to mortgage customers who are up to date with their payments. If you’re not currently up to date with your payments please contact us as soon as you can to discuss the support available to you. You can visit our Money Worries page for more information.
We want you to know that we’re here to support you if you need help. Our team are on hand to help, please get in touch to discuss your options.
No, the government temporary support scheme is only available to residential owner occupied customers. If you’re a buy to let landlord and are worried about making your payments, please contact our team for support.
If you chose a repayment mortgage your monthly payments pay back both the interest charged on the mortgage and part of the amount you borrowed. This means that your mortgage balance steadily reduces throughout your mortgage term. As long as you keep up your repayments your mortgage will be paid off in full at the end of the term.
If you choose an interest only mortgage your monthly payments will only pay back the interest on your mortgage. This means that at the end of your mortgage term you’ll still owe the amount that you originally borrowed and you’ll need to repay the outstanding balance as a lump sum.
You'll need to complete your Mortgage Charter request no later than 15 working days before your next direct debit date. We'll then have enough time to set this up for you. If your request completes later than this, your monthly payment will reduce from the following month. If you are requesting a temporary switch to interest only you’ll still get the 6-month interest only period you asked for.
Subject to status. Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments.