HM Treasury has confirmed that the Chancellor secured a commitment from major mortgage lenders to proactively contact 1.6 million customers whose fixed‑rate deals expire between now and 31 December 2026. The GOV.UK statement says borrowers will receive clear information on available options and how to access tailored support well before any payment changes take effect.
The meeting also reaffirmed the Mortgage Charter for 2026, a voluntary set of lender commitments agreed with government and regulators to provide structured help for residential mortgage holders. The intention, as set out by the Treasury, is to maintain a predictable safety net for households concerned about affordability.
Under the Charter, customers may book a new rate up to six months ahead and switch to a new deal with their existing lender without a fresh affordability check. This preserves access to standard product transfers even where household finances have tightened since the original loan was agreed.
Temporary breathing‑space measures remain available. Where appropriate, lenders will allow a move to interest‑only payments for six months. The Government has stated that engaging with support teams to discuss these options will not affect a borrower’s credit score, encouraging early contact from those who are worried about meeting repayments.
Lenders reported to the Chancellor that more customers are seeking guidance. According to real‑time data cited by the Treasury, new lending volumes are holding up and arrears remain low. With around 86 per cent of mortgages on fixed rates, most borrowers are insulated from short‑term market moves until their current deal ends.
For customers whose fixed terms end in 2026, the immediate practical effect is straightforward: expect outreach from the current lender well ahead of the reset date, outlining product‑transfer choices and the route to bespoke help. Booking a rate six months in advance can provide price certainty while options with the same lender are considered.
Short‑term interest‑only can ease monthly outgoings but does not reduce the principal. Payments will rise when the arrangement ends unless the term is adjusted, increasing total interest over time. Borrowers should request clear, written illustrations from their lender of expected costs before opting for any temporary measure.
Chancellor Rachel Reeves described the package as reassurance and practical help, emphasising that anyone who is worried can access Mortgage Charter options without their credit score being affected, according to the GOV.UK statement. The Treasury indicated it will monitor contact levels, lending trends and arrears as 2026 maturities progress.