Virgin Money and Clydesdale Bank have pledged to aid customers navigating the ongoing cost of living crisis, a trying period for many households.
The banks have announced their commitment to the Government’s Mortgage Charter designed to assist residential mortgage customers who may be distressed about escalating mortgage interest rates or who are encountering financial hardships.
A variety of measures are set in place to support customers who have kept their payments current. The banks will:
- Allow customers to switch to interest-only payments for a six-month duration.
- Provide customers the opportunity to extend their mortgage term to decrease their monthly payments. They will also have the flexibility to revert to their original term within six months without the need for an affordability check.
Virgin Money and Clydesdale Bank have also developed a calculator tool that customers can utilise to estimate their new mortgage payment.
Customers can submit requests through an online form on the banks’ websites, following which the banks promise to handle the remainder of the process.
The banks also highlighted their product transfer policies. At Clydesdale Bank, customers can apply for a product transfer up to 180 days before their current deal ends. At Virgin Money, the application for a product transfer can be made up to 120 days in advance. In the event of a rate decrease before the commencement of the new deal, customers can switch to the new rate.
The banks urged customers who are anxious about their mortgage repayments to contact them. Importantly, speaking to the banks will not impact customers’ credit scores.
