FCA changes

Whilst the proposals will be helpful, much of this will not be enough to help those with the severest situations. Increasing the Interest Only period to 12-18 months would be more helpful, given many borrowers will have opted to take a shorter-term deal in the hope that rates settle down during this time. The same problem will be there after 6 months, continuing to make high payments at a time their rate may be fixed for another year or so.

The Mortgage Charter isn't much different to what majority of lenders were/are doing anyway. People should be cautious if needing to get assistance and, rather than jumping like the Covid support, only take it if absolutely necessary and get suitable advice around this as there could be other unintended consequences as a result. It could also pose a risk to the original advice given if consumers go directly to their lender and get no guidance around their actions.

Not sure how sharp the pencil was sharpened when the FCA made changes to its rulebook - 6m Interest Only Payment relief and 12m grace repossession periods, have been in place for many years already, with the majority of high street lenders - "wont affect your Credit profile" seems to be the only difference, on the recent changes, and would be interested to see what lenders off the 90% Mortgage Charter abide by this. The big call would have been an industry CAP on Lender's SVR rates - between 0.5% to 1.0% above BOE Base rate max - this would have allowed brokers and clients, breathing space to make correct informed decisions on a new Residential and Buy To mortgage deal, and more importantly, some breathing room for mortgage prisoners, that are unable to Product Transfer with existing lenders. Lenders standard variable rates,, in current climate, should be largely non-profit in my opinion - so my question is, why are Lenders' standard variable rates so different, and profit making ?

The changes brought about by the Mortgage Charter are a mere bandage on a broken leg. It will offer some small level of support, but ultimately will not fix or re-set the bone. These short-term measures allow borrowers some short-term pain relief but if they are not able to switch back in 6 months then it can have a damaging effect on their credit file. Interest-Only borrowing and longer terms taking people deep into their 70s if not corrected by switching back, over-paying or changing on a future remortgage creates another timebomb of vulnerable clients down the road. I do not think the support offered is sufficient to be of use to many households.