Mortgage Charter

You can pre-book a new mortgage deal up to 3 months before your current deal ends, as long as you’re up to date on your mortgage payments. And we’ll do this without carrying out an affordability check.

If your mortgage is on a temporary interest-only basis under the Mortgage Charter, and you’d like to switch to a new mortgage deal, you’ll need to call 0800 056 1088. Lines are open from 8am – 8pm Monday to Friday (excluding bank holidays) and 9am – 2pm on Saturdays.

You can request to transfer to an interest-only mortgage for 6 months. Everyone who is named on the mortgage will need to approve this request. This can reduce your monthly mortgage payments as you’ll only be paying off the interest and not the loan. However, switching temporarily to an interest-only mortgage does mean you'll pay back more interest overall.

If you use a screen reader or need more support, you can request a change to a temporary interest-only mortgage by calling the Mortgage Servicing team on 0345 835 3380. Lines are open from 8:30am – 7pm Monday to Friday (excluding bank holidays).

To complete this request, we’ll need some information about you, as well as the names and email addresses for anyone else named on the mortgage. We’ll send an illustration within 5 working days to all parties to the mortgage to review and sign. If your monthly mortgage payment is due within 5 working days of your request, we will send out the illustration once your payment has cleared to ensure you are given the correct balance and payment details. We will begin processing your request once all parties to the mortgage have signed the illustration and if eligible, will be applied within 5 working days (excluding bank holidays). If your next monthly payment is due during this period, we will make the change to temporary interest-only for a period of six months in readiness for the following month.

If you have an arranged overpayment in place, this will continue throughout your temporary interest-only period, unless you cancel it. Any overpayments made to your mortgage prior to or during your temporary interest-only agreement will be used to recalculate your monthly payments once your mortgage reverts to a repayment basis. This recalculation will not reduce your existing mortgage term.

The details you share need to match what we hold for your mortgage. If you need to update any details, you can visit our Help and Support page and select “Update details”.

If you make another application whilst you’re on a temporary interest-only basis i.e., Additional Borrowing (unless it’s for essential repairs), you’ll need to withdraw from the scheme early or you’ll need to wait for the interest-only period to end before applying. You won’t be eligible for another temporary interest-only agreement unless you start a new mortgage application with TSB. Your most recent payment needs to be paid on a capital and interest basis before an application i.e., Additional Borrowing, can be made.

After 6 months, your mortgage will move back to a repayment mortgage. When this happens, your monthly payments will be higher because you’ll be paying both the interest and the loan amount for your mortgage. Please make sure you have plans in place for these higher monthly payments. We will not report your temporary move to interest-only as a payment arrangement on your credit file.

If you can continue to make your mortgage payments, then you should do so. This is a variation to your mortgage contract and will be completed without any guidance or advice from us. It’s up to you to make the decision on what’s right for you.

How much is left on your mortgage balance will determine how much your interest-only monthly payments will be. Our mortgage calculator and temporary interest-only mortgage examples can help to give you an idea of what your payments might be.

Adobe digital forms

We use Adobe Sign for this kind of request. Adobe will pass the information you provide to us in a secure manner and won’t process it in any other way. Information on how we use your data can be found in our Data Privacy Notice.

If you cancel your interest-only agreement under the Mortgage Charter early, you won’t be eligible for another temporary interest-only agreement on this mortgage under the Mortgage Charter. For example, if your temporary interest-only payment is cancelled after 2 months, you won’t be able to come back and request another 4 months on your existing mortgage. Any subsequent requests for an interest-only mortgage will be subject to our normal criteria outside the Mortgage Charter scheme.

Your cancellation request will take effect as soon as possible. This will be from either the next calendar month, or the following month depending on your monthly payment date. Once your mortgage is back on a repayment basis, your monthly payments will change to reflect this. Your new monthly payments will be based on your applicable interest rate and balance at the time the cancellation is processed. We will email/write to you to confirm the start date of your new monthly payments once the cancellation has been processed.

Once your temporary interest-only agreement has been cancelled, you will need to make a full monthly payment on a repayment basis before starting any new applications relating to this mortgage.

We will not give you any advice or recommendations in relation to cancelling your temporary interest-only agreement early. No affordability checks will be carried out to know whether cancelling this agreement is a suitable option, or that your new monthly payments will be affordable.

There is no need to cancel your temporary interest-only agreement if you are looking to complete a product transfer or rate switch. Please contact your broker or book a call with one of our Mortgage Advisers on 0800 056 1088 for support. Lines are open from 8am – 8pm Monday to Friday (excluding bank holidays) and 9am – 2pm on Saturdays

If you think you may be able to pay more each month, please consider making an overpayment instead of cancelling your agreement.

We understand that you may be anxious or worried about keeping up with your mortgage payments. If you don’t think you’ll be able to make the monthly payments, please tell us as soon as possible so we can find the best way to support you. You can call us on 0345 835 3374. Lines are open from 8am – 7.30pm Monday to Friday (excluding bank holidays) and from 8am – 12.30pm on Saturdays.

If you use a screen reader or need more support, you can request to cancel your temporary interest-only agreement by calling the Mortgage Servicing team on 0345 835 3380. Lines are open from 8:30am – 7pm Monday to Friday (excluding bank holidays).

Adobe digital forms

We use Adobe Sign for this kind of request. Adobe will pass the information you provide to us in a secure manner and won’t process it in any other way. Information on how we use your data can be found in our Data Privacy Notice.

If you'd like to extend your mortgage term to reduce your monthly payments, book a call with our Mortgage Advisers. The call will take approximately 30 minutes. They’ll chat through your options and give you information that’s tailored to your needs.

If you use a screen reader or need more support, you can request a term extension by calling 0800 056 1088. Lines are open from 8am – 8pm Monday to Friday (excluding bank holidays) and 9am – 2pm on Saturdays.

If you already know how long you want to extend your mortgage for, then we can do this for you without offering any advice. Our mortgage calculator and term extension examples can help to give you an idea of what your payments might be.

By extending your mortgage, you’ll pay more interest overall. If you can continue to make your current mortgage payments then you should do so. You can switch back to your original term within the first 6 months of the term extension without an affordability assessment. After 6 months, we’ll need to carry out full application and affordability checks.

Adobe digital forms

We use Adobe Sign for this kind of request. Adobe will pass the information you provide to us in a secure manner and won’t process it in any other way. Information on how we use your data can be found in our Data Privacy Notice.

How do I switch back to my original mortgage term?

You can request to switch back to your original mortgage term under the Mortgage Charter by completing the Adobe form. Switching back to your original term means you won’t be eligible for another Mortgage Charter term reversal without full affordability checks.

If you use a screen reader or need more support, you can request a change to a temporary interest-only mortgage by calling the Mortgage Servicing team on 0345 835 3380. Lines are open from 8:30am – 7pm Monday to Friday (excluding bank holidays).

To complete this request, we’ll need some information about you, as well as the names and email addresses for anyone else named on the mortgage. We’ll send a declaration to all parties on the mortgage to review and sign and we’ll send this within 5 working days. Once all parties have signed the declaration, it’ll take 5 working days to process the change on your mortgage account.

The details you share need to match what we hold for your mortgage. If you need to update any details, you can visit our Help and Support page and select “Update details”.

How much is left on your mortgage balance will determine how much your interest-only monthly payments will be. Our mortgage calculator and temporary interest-only mortgage examples can help to give you an idea of what your payments might be.

Adobe digital forms

We use Adobe Sign for this kind of request. Adobe will pass the information you provide to us in a secure manner and won’t process it in any other way. Information on how we use your data can be found in our Data Privacy Notice.

How do I reduce my mortgage term?

If you'd like to reduce your mortgage term but not back to the original term, book a call with our Mortgage Advisers. The call will take approximately 30 minutes. They’ll chat through your options and give you information that’s tailored to your needs.

If you use a screen reader or need more support, you can request a change to a temporary interest-only mortgage by calling the Mortgage Servicing team on 0345 835 3380. Lines are open from 8:30am – 7pm Monday to Friday (excluding bank holidays).

If you already know how long you want to reduce your mortgage by, then we can do this for you without offering any advice. Our mortgage calculator and term extension examples can help to give you an idea of what your payments might be.

By reducing your term you will not be eligible for another Mortgage Charter term reversal without full affordability checks.

Adobe digital forms

We use Adobe Sign for this kind of request. Adobe will pass the information you provide to us in a secure manner and won’t process it in any other way. Information on how we use your data can be found in our Data Privacy Notice.

We’ve put together some examples to show how using the term extension or temporary interest-only mortgage options available through the Mortgage Charter will affect your mortgage repayments.

These examples show a customer with an outstanding balance of £150,000, paying interest of 6% and with 15 years remaining on their mortgage contract.
 

Term Extension

Extending your mortgage lowers your monthly payments as you’re paying it back over a longer time. Because of this, you’ll pay more interest over the mortgage term.

Here’s what extending the term could do to your payments:

How much more interest you would pay due to the mortgage extension:

What your payments would be if you chose to go back to the original mortgage term after 6 months:

You can switch back to your original term within the first 6 months of the term extension without needing an affordability assessment. By doing this, you’ll pay less interest than if you continued with the extended term.

If you apply to reduce your term after 6 months, we will need to carry out full application and affordability checks. Reducing your term by any amount will mean you pay less interest over the life of the mortgage.
 

Temporary interest-only mortgage

You can choose to temporarily move your mortgage to interest-only payments. Doing this will reduce your monthly payments, but you will not be repaying the debt.

If the interest rate stays at 6% for the remainder of the mortgage term, you’ll pay £1,602 more than if you’d not temporarily had interest-only repayments.

Can I have all three Mortgage Charter options?

Depending on your personal circumstances and what you select it may be possible to have more than one option under the Mortgage Charter. It’s important you think carefully on which option is right for you and how each one will impact your mortgage.

TSB won’t give you any advice or recommendations for Mortgage Charter treatments, this means TSB won’t carry out affordability checks to see whether what you may chose is suitable.

What options should I select?

You’ll need to consider how the options impact your mortgage. For example if your fixed rate is coming to an end or you’re on a variable mortgage, you may consider switching your mortgage product first as the term extension or temporary interest-only payments will then be based on your new mortgage product.