Customers coming to the end of their mortgage deal will now be offered a product transfer by their lender – even if they are taking a mortgage payment holiday.
UK Finance said these new measures have come about due to the ‘current exceptional circumstances’
Around one million customers are expected to reach the end of their fixed-rate deal between now and the end of 2020.
To be eligible for a product transfer, customers need to be up to date with payments, approaching the end of their fixed-rate term and not looking to borrow any more.
Eligible customers should be contacted by their lender when the end of their term approaches.
Stephen Jones, chief executive of UK Finance, said: “Lenders understand that many households are seeing their finances squeezed due to the coronavirus pandemic and we are working hard to help customers get through these tough times.
“The industry has acted quickly to support homeowners through this crisis and has taken decisive steps to ensure that eligible customers on payment holidays due to Covid-19 can opt for the security of fixing their monthly mortgage payments going forward.
“There is a range of support available to mortgage holders concerned about their finances. We would encourage any homeowners impacted by coronavirus to visit their lender’s website in the first instance to find out more information and how to apply.”
Any eligible customer coming to the end of a fixed-rate mortgage is typically offered a product transfer by their lender, following an agreement introduced in 2018 by UK Finance, the Building Societies Association (BSA) and the Intermediary Mortgage Lenders Association (IMLA).
This post has originally been featured in Property Wire.