Hey there, financial enthusiasts! We've got some exciting news to share about TSB - they're taking a proactive step to support their buy-to-let customers by broadening the Mortgage Charter measures. You might have heard about this government and Financial Conduct Authority initiative launched back in June, designed to lend a helping hand to borrowers during tough times. Well, now TSB is jumping on board to extend this support to its buy-to-let clientele.
First things first, let's talk a bit about what this Mortgage Charter is all about. It's a voluntary initiative that lenders, like TSB, can join to offer some much-needed relief to borrowers facing financial challenges. It covers a range of measures, from letting customers temporarily switch to interest-only payments to granting mortgage term extensions and even allowing temporary payment deferrals.
What's impressive is that this charter already has 43 lenders on board, accounting for a whopping 90% of the mortgage market. That's a significant effort to help homeowners navigate through difficult times!
Originally, the Mortgage Charter focused solely on supporting regulated residential homeowners who were feeling the pressure from higher interest rates. However, TSB has taken the initiative to go a step further and offer the same kind of support to their buy-to-let customers too. It's all about standing with their customers and helping them through the rising cost of living.
Nicola Bannister, TSB's financial support director, couldn't have said it better when she mentioned, "We have a range of ways to help all TSB customers impacted by the rising cost of living – including those worried about their mortgage payments both on residential and buy-to-let properties. We continue to encourage those customers to contact us as soon as possible."
Now, you might be wondering how this measure stacks up in comparison to the pandemic payment holidays we experienced earlier. Well, lenders believe that while the use of the Mortgage Charter measures might be lower than those payment holidays, the key takeaway is the consistency it brings to the table. Customers knowing that support is available and accessible can make a world of difference during uncertain times.
It's also worth noting that the buy-to-let sector isn't explicitly covered by the Mortgage Charter. However, that's not stopping companies like Paragon, whose CEO Nigel Terrington has affirmed that they're following the same measures and are more than willing to join the charter if required.
All in all, it's heartening to see financial institutions like TSB taking proactive steps to support their customers. Remember, if you're a TSB customer - whether for residential or buy-to-let properties - and you're facing difficulties, don't hesitate to reach out to them. They're here to help!
Stay financially savvy, folks, and until next time!
My Financial Pro
