If you can afford to make your current mortgage payment then you should continue to do so. Maintaining your full mortgage payment will ensure that you don't pay more interest over the term of the mortgage.
No, there is no cost to you under the Mortgage Charter.
The maximum term is 40 years from the Mortgage Charter request and is subject to our lending criteria e.g. age policies.
Because of the temporary interest only period, the capital you haven’t repaid in those 6 months will need to be repaid over the remaining term of your mortgage. As well as increasing your ongoing payments, this will increase the amount of interest you pay over the life of the mortgage.
Increasing your mortgage term is a permanent change and will also mean that in the long term the amount of interest you pay over the life of the mortgage will increase.
If you want to reverse the term extension in the first 6 months you can do so. After the 6 months you can request the change but it would be subject to lending policy and affordability checks.
Please speak to us as soon as you know you may be unable to make a mortgage payment. We have alternative support options available for customers who are unable to keep up with their payments. Our specialised teams are available to chat through your concerns. Head to our Cost of Living Hub to find out more. In the meantime, your Mortgage Charter arrangement would continue.
Yes, Virgin Money, Clydesdale Bank and Yorkshire Bank customers can apply for a new deal once they are within six months of their current deal ending. To find out more, visit our dedicated switching pages:
Clydesdale Bank Customers
Clydesdale Bank switching page.
Virgin Money Customers
Or speak to a mortgage broker.
If your mortgage payment Direct Debit is due within the next 10 days, we may collect your current mortgage payment. Your new payment will then be effective from the following month.
Currently, there is no end date by which you need to submit your request.
Your credit score will not be affected by either of the changes. Please be aware that your credit score can be impacted by other things, for example how much credit you use, your payment history and applications for credit elsewhere.
Customers applying for temporary Interest Only
If you pay be Direct Debit, for the duration of your interest only, we will only collect a payment to cover interest. If you make payments in another way, you should change your repayment amount to one which is affordable, and at least covers the interest each month.
To make sure your payments cover interest only, any overpayment arrangements that were in place will be stopped.
At the end of the 6 months we can reinstate any overpayments you can afford to make. We’ll contact you closer to the time about what happens when the 6 month period ends.
Customers applying for a Term Extension
If you pay by Direct Debit we will automatically change your monthly payment. If you make payments in another way, you should change your payment amount to ensure that it is sufficient.
Any overpayment arrangements in place will be stopped.
If your rate is coming to an end or you are on a variable mortgage rate and we make a change to that rate while your temporary interest only payment is in place, your new temporary payment will also change. If that happens, we’ll let you know in advance.
If you have already selected a new product rate to transfer onto, we will process your interest only request to start at the same time as the new product rate. You will still receive the 6 months interest only period.
If you are using a broker, they will need to complete the product transfer first and then you will need to request to move onto interest only payments directly with Virgin Money or Clydesdale Bank.
At Clydesdale Bank and Yorkshire Bank you can change your previously selected deal to a different one right up until the point your existing deal ends. We will send you new documents to review, so it’s important that you allow enough time for your request to be processed if you want to avoid spending any time on the Standard Variable Rate. We must receive your new application for the new deal at least two weeks before your current deal ends to guarantee your new rate starts at the beginning of the next month. Applications received after that date will still be allowed but it’s likely that the new rate will not take effect until after the beginning of the month, which means you may be charged a few days’ interest at Standard Variable Rate.
At Virgin Money, you can change your previously selected deal to a different one right up until the point your existing deal ends. We’ll need to send new documents to review, sign and return to us. It’s important that you allow enough time for your request to be processed if you want to avoid spending any time on the Standard Variable Rate. In line with the Mortgage Charter, we must receive your signed acceptance for the new deal at least two weeks before your current deal ends to guarantee your new payment collects the following month. Where you do not pay by Direct Debit please ensure you amend your payment amount. Acceptances received after that date will still be allowed, but it’s likely that the new payment will not collect until the month after your current deal ends. This means you will have one payment at Standard Variable Rate.
Yes. Where you have a Consent to Let agreement in place you can apply for Charter Support.
If you sell your property during the 6 month Charter period, any arrangement in place will be cancelled when your mortgage is redeemed.
Temporary interest-only will automatically be set up for a 6-month period. However, you can cancel this at any time and revert to your Capital and Interest payment by calling us on the number below:
Virgin Money customers call 0800 028 2518. We’re here 8am to 6pm Monday to Friday (lines open at 9:30 on Wednesdays). 9am to 1pm Saturday.
Clydesdale and Yorkshire Bank customers call 0800 023 2720. We’re here 8am to 5pm Monday to Friday (lines open at 9:30 on Wednesdays).
Where you choose to extend your mortgage term, and do not reverse this within the 6 month mortgage charter period, this may mean any life insurance/critical illness you have in place may expire before you repay your mortgage. You may wish to review this with your provider
Any annual statements you receive during your temporary interest only period will refer to your loan as being interest only because of the Charter arrangement. Because of this, it will also say you need a repayment vehicle - don’t worry, this will not apply to you, so please ignore this paragraph.
You can still apply for a product transfer. If you are a Clydesdale Bank and Yorkshire Bank customer, you can find out more information on our dedicated switching pages and apply online:
Clydesdale Bank Customers
Clydesdale Bank switching page Link opens in a new window
Yorkshire Bank Customers
Yorkshire Bank switching page Link opens in a new window
If you are a Virgin Money Customer, please call in on 0800 028 2518
Please be aware that you will have to decide to:
stop your mortgage charter temporary interest only when your new product rate begins
or
start your new product rate when you mortgage charter ends, this may mean you are on SVR in the interim period and pay a higher payment.