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Established in Newport in 1869 to help local people build homes, we now help people across Wales and England buy properties and save for their future.
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12 Jul 2023

Monmouthshire Building Society Joins the Government’s Mortgage Charter

There has been lots of information about mortgages in the news recently, particularly after the most recent Bank of England bank rate increase on 22nd June 2023. We’re aware that these increases can be a worrying time for our members who have mortgages with us and want to reassure you that we are committed to supporting you through these difficult times.

The government recently created a Mortgage Charter, for mortgage lenders like us to voluntarily sign up to. It offers commitments to people with residential mortgages to provide them with further support during this time. Monmouthshire Building Society has joined this charter to make sure we continue to offer as much support and flexibility to those who may be in financial difficulty.

Our commitments to the Mortgage Charter and our Members are:

These are the commitments we are offering our members as part of this charter.

This is only available to accounts that are currently up to date.

  • If you’re struggling, or think you might be soon, please talk to us and we’ll look at the options available to help you
  • If you need support with your mortgage, please reach out to us to ask for help, speaking to us won’t impact your credit rating
  • If your current deal is coming to the end of its term and your account is up to date, you can switch your existing balance to another mortgage deal with us without an affordability check (if you move to another lender, you will need an affordability check)
  • Secure a new rate up to 4 months before your current rate ends
  • You will be able to extend the term of your mortgage to lower your monthly payments. You’ll pay more interest overall so you should only consider this if you think you will struggle to maintain your payment
  • You can change to interest only as a short term measure if your account is up to date. This will lower your payment for 6 months. Your payment will however be higher after the 6 month period, so you should only consider this if you think you will struggle to make your payment
  • If we offer a better rate than the one you’re currently on and your account is up to date, please just contact us to discuss
  • We won’t force anyone to leave their home for at least 12 months after a first missed payment.

Mortgage Charter – Consumer Q&A

What Has Changed?

Lenders already offer a wide range of tailored support to anyone struggling with their mortgage payments. Details of the new Mortgage Charter can be seen on the government’s website.


Does The Charter Apply For All Mortgage Borrowers?

The Charter only applies to customers of lenders who have signed up. Support under the Charter is available for first-charge residential mortgage-holders who are up to date with their payments. However, all mortgage lenders, whether they have signed up to the new Charter or not, provide extensive support to their borrowers who may be struggling with their mortgage payments.


If you are concerned about your finances, now or in the future, please contact us and we will work with you to explore the different options available and find one that is most

appropriate for your specific circumstances.


What Happens If I Am Already In Arrears?

The Charter only applies to borrowers who are up to date with their mortgage payments. We have a range of tools that they can use to support those in arrears, depending on a borrower’s individual circumstances.


The earlier you contact us, the more options we will have available and the sooner we will be able to help. Even if you have missed payments, we will still be able to help you.


If I Miss A Payment, Will My Home Be Repossessed?

No lender wants to repossess someone’s home, and repossession is only done as either a last resort or when it is in the financial interests of the borrower. For this reason, all building societies (including those that haven’t signed the new Mortgage Charter) have an extensive range of options available for customers experiencing difficulties.


In addition, from 26 June, borrowers of the Charter signatories will not be forced to leave their home without their consent, unless in exceptional circumstances, within 12 months of missing their first payment.


My Fixed-Rate Deal Is Coming To An End, And I’m Worried About Higher Payments. What Can I do?

From 10 July, customers of lenders signed up to the Charter who are coming to the end of their fixed-rate deal will be able to book a new fixed mortgage rate up to four months before their existing deal expires. If a lower rate becomes available before you move on to the new fixed rate, you will be able to change to the new lower rate up to two weeks before your new rate starts.


What Additional Options Do I Have As Part Of The Mortgage Charter?

Switch to interest-only payment for six months

First-charge residential mortgage-holders who are up to date with their mortgage payments are permitted to switch to interest-only payments for six months. There will be no impact on your credit file as a result of this change.


Extend the term of the mortgage

First-charge residential mortgage-holders who are up to date with their mortgage payments can extend their mortgage term to reduce their monthly payments and have the option to revert back to the original term within 6 months by contacting us. You can extend the term up until your retirement age. If you wish to go beyond retirement age, you will need to apply through an advised process. There will be no impact on your credit file as a result of this change. We will make clear to you the potential costs of taking one of these options


Both of these options may decrease your payments in the short term, but you will pay more over the term of the mortgage. If you can afford to maintain your current payment, then you should do so


Will Borrowers Need To Have Missed A Payment Before Being Given Help?

You do not have to miss a mortgage payment to ask us for help. The sooner you contact us the more options we will have available to support you. You should always speak to us before you cancel any direct debits, as these may result in missed payments, which will be shown on your credit file and will impact your credit score. If you can afford payments to your mortgage you should continue to pay them.


We believe in supporting our members through difficult times, and encourage anyone who is worried to call us directly on 01633 844371.


For free, impartial financial support advice visit our Financial Support pages to discover organisations that can help