When are the mortgage providers going to actually start implementing the new mortgage charter?

Ursk

amnblog said:

1. The code is voluntary
2. It is open to interpretation by the Lender
3. What MWT says

Individual cases have individual circumstances we are not privy to. 

I'm really confused by the idea that this can be "open to interpretation". All of the information provided by the government seems to say all the signatories have agreed to provide all the parts of the charter, and none of it seems ambiguous, but I've just talked to my lender about if I can reserve a new rate 6 months out rather than the 120 days they currently offer and the person on the phone said no as the 6 month part wasn't a "mandatory part of the Charter". How do we know what parts the lenders have to abide by and what parts are optional, since none of the articles or documents I've read even mention the idea that the lenders don't have to follow everything (your comment and the statement from my lender on the phone was the first time I'd heard of it).

MWT

Still going to have to wait a bit longer for changes to get implemented and staff training rolled out...

Until then you will get random versions of 'No, because...' as their systems are not letting them do things like 6 months where it is currently 3 months.

Once that changes you'll be able to do it.

london21

A bit stressful.

Virgin money allow 4 months before to remortgage don't think the 6 months has started with them yet.

BOE next rate increase around the corner.

Called virgin money with the intention of mortgaging on the 5th August, current deal ends 01/02/2024 and they are still saying reportage is 120 days before 4th October but advisor said can have 6 months interest only or increase the term. I would like to select a fix rate ASAP, later when my 1.64% ends then will opt for interest only but my propriety now is to fix as soon as I can before BOE increase rates further.

JMA74

With effect from 10th July customers approaching the end of a fixed rate deal will have the chance to lock in a deal up to six months ahead. 

Up to 6 months

Plenty of lenders are not changing from 3 or 4 months as they currently sit as this is already 'up to 6 months' 

MWT

It does make that part of the Charter more sound-bite than useful with that perspective, as that means in reality many borrows will not have a chance of doing it "up to 6 months ahead" they will only have a chance "up to 3 months ahead" ...

In general it feels like the only new and unambiguous thing in the charter is the ability to opt for 6 months on interest only payments, and that is the bit most have not implemented yet, and in all probability the bit that most borrowers probably shouldn't use anyway...

london21

JMA74 said:

With effect from 10th July customers approaching the end of a fixed rate deal will have the chance to lock in a deal up to six months ahead. 

Up to 6 months

Plenty of lenders are not changing from 3 or 4 months as they currently sit as this is already 'up to 6 months' 

Are you serious. 

Its pointless then. 

Thought virgin money will change from 4 months to 6 months to secure new rates. 

london21

MWT said:

It does make that part of the Charter more sound-bite than useful with that perspective, as that means in reality many borrows will not have a chance of doing it "up to 6 months ahead" they will only have a chance "up to 3 months ahead" ...

In general it feels like the only new and unambiguous thing in the charter is the ability to opt for 6 months on interest only payments, and that is the bit most have not implemented yet, and in all probability the bit that most borrowers probably shouldn't use anyway...

The help doesn't seem much of any help. 

Paying interest only for 6 months will be helpful but the option to fix 6 months before end of term is more sensible. 

MWT

london21 said:

The help doesn't seem much of any help. 

Can only hope that there is some clarification on the 'up to...' part as you cannot claim to be giving a chance to lock in a deal up to 6 months ahead if there is only a chance to do it 3 months ahead, zero chance over 3 months isn't 'a chance...'.

The choice of when to do it within the 6 months needs to be on the borrower side, not the lender...

This feels like one for Martin if the lenders are going to use that interpretation...

Ursk

I guess it is unhelpfully vague, because whilst it can be interpreted as "being able to lock in a deal up to 3-4 months ahead is up to 6 months so is ok" that seems to be really bending the words against their more common understanding (and possibly the intention of the writers) as it can also be interpreted as "you have to be able to lock in a date up to 6 months ahead, so you have to be able to lock it in from 6 months ahead" which I think is how all the articles about it and the public at large are interpreting it. But then, common understanding and the law are not always the same... Hard to say what the Government means or will do about this, and how the FCA will enforce this if some lenders are leaning on the less generous interpretation, but if it does end up in a legal quibble then by the time it is resolved, a lot of people that could have benefitted from the 6 months lock in will miss out...

I do hope my lender sees sense and changes their policy soon, but if they don't they probably still have me over a barrel here, since it's still looking like I have to stay even if I have to sit through another three rounds of base rate rises...

JMA74

plenty lenders have already come out to brokers to say they do not plan to go to 6 months as the charter says 'up to' and they say they are already meeting that.  
Unless it is made clear in law that it is an exact 6 month date then commercial decisions by the lenders will always come in to play as well