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Mortgage Charter and remortgage windows

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 09. August 2023

Interested in speaking to mortgage brokers about the Mortgage Charter and whether it has had any impact on remortgage windows offered by lenders. 

The Mortgage Charter wording says that “customers approaching the end of a fixed rate deal will have the chance to lock in a deal up to six months ahead”. While it does say "up to", so those who do not are not breaking the wording, it does seem to go against the spirit of the charter. 

  1. Are most lenders offering six month remortgage windows now? If they don't, are they planning to change their windows or not? 
  2. What reasoning are lenders giving for not changing remortgage windows?
  3. For those that may not offer a six month window, how much of a difference may this make for customers cost-wise?
  4. What advice are you giving to customers now around remortgaging/product transgers?

4 responses from the Newspage community

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Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
Very little has changed since the introduction of the mortgage charter. The wording was too vague and open to interpretation. Some lenders were already allowing product transfers 6 months in advance, those offering 4 months have mostly stuck with that. Lenders simply state it says "up to 6 months" not a minimum of 6 months, so believe their current window is fair and adequate. Those lenders may lose out on retaining clients as many clients now speak to brokers to review their options 6 months before and want to secure a rate at that point. So unless when 2 months pass the existing lender's rate is markedly better the client is likely to go elsewhere. As a broker, it would certainly be beneficial to review all the client's options at that point, and then monitor rates after looking for reductions. I would continue to advise clients to speak to a broker 6 months before their deal ends to review their options.
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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
The government's Mortgage Charter has drawn criticism for its exclusion of buy-to-let landlords from its protective measures. While the charter aims to alleviate the impact of rising interest rates on homeowners, the omission of landlords from its provisions raises questions about fairness and equality within the housing market.

This oversight will lead to unintended consequences, with landlords potentially passing on higher mortgage costs to tenants through increased rents. This exclusion underscores the interdependence of homeowners and landlords in the housing ecosystem and highlights a missed opportunity to create a holistic solution that addresses the needs of all borrowers. A more comprehensive approach that encompasses both homeowners and landlords would not only promote transparency and fairness but also contribute to the stability and sustainability of the housing market.
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James Bull
Mortgage Broker at JB Mortgages
When I first read about the mortgage charter I was very excited about the prospect of all lenders offering product transfers 6 months in advance. But unfortunately, I didn't read the small print - the charter means lenders need to offer product transfers "up to" 6 months in advance. On this basis unfortunately most lenders have opted to leave their offerings unchanged. At JB Mortgages we are advising clients to secure a new mortgage deal as early as possible, ie 6 months before their current deal ends. This way if rates continue to rise then at least a rate is reserved. And of course, if rates drop then we can always change to the new lower deal.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
Did the 'Mortgage Charter' actually change anything or was it a convenient headline so the government could say they'd actually done something about the cost of living crisis without really doing very much at all?