HSBC has launched an online support hub for customers concerned about their mortgage repayments as interest rates rise.
The pages provide a range of information and tools, including step-by-step instructions on how to apply for the measures set out in the Mortgage Charter, agreed between government and the country’s major home loan lenders last month.
The bank says it is “fully committed” to the charter, adding that the range of options available to borrowers includes:
Temporary interest-only payments
- If the customer has a capital repayment mortgage but feel they would benefit from a reduction in their monthly payments, they may be able to change their monthly payment to just pay the interest for six months. After six months, they will go back to repaying both capital and interest.
Extending the term of the mortgage
- A customer may be able to extend the term of their mortgage to help cut monthly payments.
The lender adds that a “mortgage is usually the biggest household expense” which is why it’s worth brokers and borrowers “taking the time to review the details of the mortgage and make sure it still suits the needs of the customer”.
HSBC UK head of mortgages Andrew Matson adds: “While every customer’s situation is different, we have a range of tailored options that we can use to help them find their way through.”
The move by HSBC comes ahead of June inflation data to be released by the Office for National Statistics on Wednesday.
When the current 8.7% figure for the 12 months to May was released last month. It sparked the latest round of rate rises from mortgage lenders as money markets bet that the cost of living would remain high, forcing the Bank of England to continue pushing up interest rates, currently at 5%.
Last month, Chancellor Jeremy Hunt said the Mortgage Charter would “offer comfort” to 1.4 million homeowners who may struggle with the new remortgage deals they are set to move onto this year.
The 13-page document was signed by 32 institutions that represent 85% of the mortgage market, including such lenders as Barclays, Lloyds Banking Group (including Halifax and Scottish Widows) and Nationwide Building Society.
