HM Treasury convened the six largest banks and building societies, alongside UK Finance, to assess the impact of the conflict in Iran on households and small businesses. The meeting resulted in a commitment from participating lenders to proactively contact 1.6 million customers whose fixed-rate mortgage deals end between now and the end of the year, setting out customers’ options and how to access tailored support ahead of any payment changes. The Chancellor also reaffirmed the Mortgage Charter as the main support framework for borrowers, including the ability to book a new rate up to six months in advance and to switch to a new deal with an existing lender without a fresh affordability check. Temporary support options include moving to interest-only payments for six months, with support discussions not affecting credit scores; lenders also reported increased customer contact for guidance, while real-time data shows lending holding up well and arrears remaining low, with around 86% of mortgages on fixed rates.
HM Treasury 2026-03-26
United Kingdom's HM Treasury secures lenders’ pledge to contact 1.6 million mortgage customers and reaffirms the Mortgage Charter
HM Treasury convened major banks and UK Finance to address the Iran conflict's impact on households and small businesses, resulting in a commitment to contact 1.6 million customers with expiring fixed-rate mortgages. The Chancellor reaffirmed the Mortgage Charter, allowing borrowers to book new rates in advance and switch deals without fresh affordability checks. Temporary support includes interest-only payments for six months, with no credit score impact, while lending remains stable and arrears low.