Struggling with mortgage payments: what lenders must do and where to get help
Published · 4 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
If mortgage payments become hard to meet, UK lenders have rules to follow. This guide explains the FCA rules on fair treatment, the options a lender may consider, the Mortgage Charter, and where free help is available.
Who this guide is for
This guide covers regulated residential mortgages, the kind taken out to buy a home to live in, in the UK. The FCA's mortgage rules apply across the UK. The Mortgage Charter does not cover buy-to-let mortgages. Court processes for repossession differ between England, Wales, Scotland and Northern Ireland, and this guide does not set them out.
What the FCA rules say
The FCA's mortgage rulebook (MCOB 13) says a lender must treat a customer fairly if they have, or may have, payment difficulties. That includes someone who has not yet missed a payment but is at risk of doing so. Lenders must have written policies for this and must take extra care with vulnerable customers.
- The lender must make reasonable efforts to agree a way to repay any shortfall, and allow a reasonable time to do it.
- It must consider options such as extending the term, changing the type of mortgage, waiving or deferring payments, or reducing the interest rate.
- It must tell the customer about any government schemes that could help, and point to free money or debt advice where that is appropriate.
- It should normally agree to a request to change the payment date or payment method unless there is a good reason not to, and explain a refusal in writing.
- During a payment shortfall it must not take more than two direct debit payments in a calendar month.
- It must not repossess a home unless all other reasonable attempts to resolve the position have failed.
- Where no workable payment plan is possible, the customer may stay in the home for a reasonable period to arrange a sale.
Options a lender may offer
FCA guidance on supporting borrowers describes several kinds of help. Some change the contract and some only reduce payments for a while.
- Accepting less than the normal monthly payment for a time, which leaves a shortfall to be dealt with.
- Extending the mortgage term to lower monthly payments.
- Switching to interest-only for a temporary period. Only some lenders can offer every option.
Lenders should explain clearly what each option means, for example that deferring interest or capital changes the total amount to be paid, and how it affects the credit file. Reducing payments now often means paying more later or overall.
The Mortgage Charter
GOV.UK says the Mortgage Charter was agreed in June 2023 and the page was last updated on 19 December 2025. Lenders who signed it have agreed that borrowers should not be forced to leave their home without their consent within a year of the first missed payment, except in exceptional circumstances. For borrowers who are up to date with payments, lenders have agreed to allow a switch to interest-only for six months, or a term extension, without a new affordability check or effect on credit score. Later payments may be higher and total cost will be higher. Not every lender has signed, so it is worth asking whether a lender has.
Free help and offers to be careful about
The FCA advises contacting a lender as soon as possible about the support available. If keeping the home is not possible, a lender may help with a sale, which can lead to a better price. MoneyHelper has a Debt Advice Locator to find free debt services, and Citizens Advice can look over an offer before it is accepted.
- The FCA says promissory notes do not count as a mortgage payment. The debt is still owed.
- Quick sale offers can be well below market value, with discounts as high as 35%.
- Firms offering sale and rent back must be FCA-authorised. The FCA Firm Checker shows whether a firm is.
- Giving a lender a false sale price is fraud.
Check before you act
Rules and lender policies change. It is worth confirming the details on the official pages linked below, and checking with the lender what it offers, before relying on this guide.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
