Do you know about the 12-month mortgage grace period from the introduction of the “Mortgage Charter”?

In the middle of 2023, a pivotal moment took place in the relationship between homeowners and lenders. Known as the Mortgage Charter, it is becoming a testament to the power of empathy, collaboration, and proactive problem-solving in addressing the challenges of home ownership. 

One part in particular that drew my attention was the 12-month grace period for homeowners, that allows 12 months from the first missed payment before any repossession actions can commence.

In essence, the mortgage charter is an acknowledgement of the challenges that homeowners face, especially in the recent inflationary times. This 12-month grace period is not merely a delay but a critical window of opportunity. It offers homeowners the chance to reassess their financial situation, seek professional advice and explore alternative solutions without the immediate threat of eviction looming over their heads.

While the 12-month grace period offers homeowners immediate relief and a chance for recovery, it also opens up a conversation about long-term solutions to housing affordability and financial security whilst offering a lifeline and a chance to regain their footing and secure their homes against times of uncertainty.

As we move forward, the principles underpinning this charter could well light the way towards a more equitable and sustainable future for the UK’s property market.

A copy of the mortgage charter can be downloaded here:

If you are experiencing anxiety, stressing over being in mortgage arrears and would like to do something about it, but don’t know where to start, then book a call with us and we can look at what options you have.