Vernon signs up to Mortgage Charter to support borrowers

28 June 2023

Vernon Building Society has signed up to the new Mortgage Charter announced by Chancellor Jeremy Hunt.

The Charter was created to support borrowers struggling with their mortgage payments.

It comprises a set of standards lenders will adopt when helping borrowers worried about higher rates.
The Mortgage Charter measures are:
• Anyone worried about their mortgage repayments can call their lender for information and support, without any impact on their credit score.
• Customers won’t be forced to have their homes repossessed within 12 months from their first missed payment.
• Customers approaching the end of a fixed rate deal will be offered the chance to lock in a deal up to six months ahead. They will also be able to apply for a better deal right up until their new term starts, if one is available.
• A new agreement between lenders, the FCA and the government permitting customers, who are up to date with their mortgage payments, to switch to an interest-only mortgage for six months, or extend their mortgage term to reduce their monthly payments and switch back to their original term within the first six months, if they choose to. Both options can be taken without a new affordability check or affecting their credit score.
• Support for customers who are up-to-date with payments to switch to a new mortgage deal at the end of their existing fixed rate deal without another affordability check.
• Providing well-timed information to help customers plan ahead should their current rate be due to end.
• Offer tailored support for anyone struggling and deploy highly trained staff to help customers. This could mean extending their term to reduce their payments, offering a switch to interest-only payments, but also a range of other options like a temporary payment deferral or part interest-part repayment. The right option will depend on the customer’s circumstances.

Chief executive of Vernon Building Society, Steve Fletcher, said: “Vernon already provides tailored support to our members struggling with their mortgage now or worried about meeting their payments in the future.

“We’re happy to sign up to the new Mortgage Charter which puts into place a set of measures to support borrowers as we go through this difficult period.

“If any of our members are worried about their finances, they should call us as soon as possible to see what options are available. As always, we’ll do everything we can to support them.”

The new measures are expected to take effect in the next few weeks. Lenders covering 85% of the residential mortgage market have signed up to the Charter.

Any Vernon borrowers worried about their mortgage payments should call the lender on 0161 519 9319 to receive personal support.