Written question asked by Rachel Gilmour (Liberal Democrat) on Friday, 28 August 2026, in the House of Commons. It was due for an answer on Wednesday, 2 September 2026. It was answered by Lucy Rigby (Labour) on Friday, 4 September 2026 on behalf of the Treasury.

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Question: To ask the Chancellor of the Exchequer, what assessment has the Government made of whether lenders' published eligibility criteria for interest-only and part-interest arrangements are attainable for borrowers in financial difficulty who are not high-net-worth individuals.

Answer

The Government recognises the difficulties faced by mortgage borrowers experiencing financial difficulty. The Financial Conduct Authority requires lenders to engage individually with customers who are struggling or worried about their payments in order to provide tailored support. This could include a term extension, a temporary switch to interest-only payments, a temporary payment deferral or part-interest, part-repayment; the right option will depend on the borrower’s circumstances.

Earlier this year, signatories also recommitted to the Mortgage Charter, which is a voluntary industry agreement that covers 90% of the mortgage market. The Charter provides additional flexibilities to help borrowers who are up-to-date with their repayments to manage their repayments over a short period.

Any borrower who is concerned about making their repayment should contact their lender. Seeking support and engaging with lenders to discuss options will not affect a borrower’s credit score in any way, and earlier engagement will mean that lenders can offer more support.

Secondary information

Type: Written question
Reference: 24612
Session: 2026-27
Subjects: Credit
Link: View this Written question on www.parliament.uk

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Secondary information

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