Mortgage payment options

The Mortgage Charter is an agreement between the government and mortgage lenders to help people who may be struggling with their mortgage payments. 

You can find full details of the Mortgage Charter on the Government’s website.

Support under the Mortgage Charter is available to Newcastle Building Society members who: 

• have a UK residential mortgage with the Society 
• are up to date with their mortgage payments 
• have more than 12 months left on their mortgage term 

If you don’t meet these criteria, we may still be able to help you through other support options. 

The Mortgage Charter doesn’t apply if: 

• you are behind on your mortgage payments (this means you’ve missed mortgage payments and have payments overdue) 
• your mortgage is buy‑to‑let, a bridging loan, a second charge loan, or equity release 
• your mortgage is in Gibraltar or Jersey 
• you have less than 12 months left on your mortgage term 

If you are behind on payments or in financial difficulty, please contact our Mortgage Payment Difficulties team on 0345 702 3083*. They are available Monday to Thursday, 9am to 6pm and Friday, 9am to 5pm. 

You can also visit our mortgage payment difficulties page for more support. 

Under the Mortgage Charter, we can offer these options based on your situation:

• temporary interest only payments 
• extending your mortgage term
• lock in a new mortgage product up to 6 months before your current product ends

These options give short‑term support and may not be suitable for everyone. 

We’re here to help our members and if the Mortgage Charter options aren’t right for you, there may be other options. Please call us on 0345 702 3083* (Monday to Thursday, 9am to 6pm and Friday, 9am to 5pm).

You can also visit our mortgage payment difficulties page for more support. 

Helping Hand, our partnership with Citizens Advice Gateshead, can also help you get confidential support if you are facing financial difficulties.

Yes. Under the Mortgage Charter, eligible customers can choose a new mortgage rate up to 6 months before their current rate ends. In most cases, this can be done without a full affordability check. 

This can help you plan ahead. If rates fall, you may be able to change your chosen rate up to 2 weeks before your current rate ends. 

Choosing a rate early does not mean it will start straight away. If your mortgage has early repayment charges (fees for ending it early). If you let us know, the new rate can start up to 3 months before your current rate ends, unless you choose to pay these charges. 

We usually contact you about switching your mortgage around 4 months before your current rate ends.

For more information, visit our Switching your mortgage page. 

We want to help you stay in your home. Taking back a property is always a last resort, and we will work with you to find other options first.

If you miss a payment, we usually won’t ask you to leave your home for at least 12 months.

We would only act sooner in very rare cases, such as:

• the home is empty
• the person who took out the mortgage has passed away
• you ask us to take the property back
• staying in the home is not safe for you (for example, due to abuse or serious health risks)

Serious health concerns are looked at on a case‑by‑case basis. 

We look at every case carefully to make sure we are doing what is best to keep you safe and protected.

Repossession is generally a last resort, used only after all other suitable support options have been explored. 

We may send you an official notice to explain how much you owe and that the case could go to court. It’s important that you contact us as soon as possible so we can discuss your options. 

We will try to help the situation in other ways where possible, including explaining voluntary options and rehousing support. 

If it has been 12 months since your first missed payment, we may begin court action, including applying for a repossession order. However, we will not usually look to carry out repossession within the first year after a missed payment. 

As part of the Mortgage Charter, temporary interest only means that for up to 6 months you will pay only the interest on your mortgage. During this time, your mortgage balance will not go down. 

When the interest only period ends, your monthly repayments will increase. This is because the balance still needs to be repaid over the time left on your mortgage. As a result, you will pay more interest than you would have under your original mortgage. 

After 6 months, your mortgage will switch back to paying both the amount you borrowed and the interest. We will write to you during the final month to confirm your new monthly payment. 

We will work out your new payment based on: 

• the amount still owed, and 
• the time left on your mortgage term

Your monthly payment will be higher than before the interest only arrangement. This is to make sure the mortgage is repaid by the end of the remaining term. 

While you are paying interest only, you are not lowering the amount you owe on your mortgage. This means that once the 6 month period ends, your monthly payments will increase.

Because of this, you will pay more interest over the full length of your mortgage than you would have under your original plan. 

This option should not affect your credit file, as long as payments are made as agreed. 

Yes. However, the Mortgage Charter options can only be used once. 

For example, if you cancel a temporary interest only arrangement after 3 months, you would not be able to request another interest only period under the Mortgage Charter. 

Extending your mortgage term means increasing the length of time you have to repay your mortgage. This can lower your monthly payments because the balance is spread over a longer period. 

However, because it takes longer to repay your mortgage, you will pay more interest, meaning the total cost of your mortgage will increase. 

Your mortgage term is the total number of years it takes to repay the full amount you borrowed and the interest charged. Extending your term means paying less each month, but for longer. 

You can extend your new mortgage term up to the earlier of: 

• the oldest borrower’s planned retirement age (up to a maximum of 70), or 
• 40 years from when you first took out your mortgage

If you change your mind, you can ask to return to your original term within 6 months of the extension being put in place, without needing an affordability check. 

Any ask to lower your mortgage term after 6 months will need an appointment with our Mortgage Advice Team and a check to make sure the payments are affordable. You can book an appointment by completing our online form, or by calling us on 0345 601 0014*(Monday to Friday, 8am to 6pm). Appointments are available Monday to Friday 8am to 8pm, and Saturday 9am to 3pm.     

Extending your mortgage term will usually lower your monthly payments, as you have longer to repay the amount you owe. However, because you will be paying your mortgage for a longer time, you will pay more interest over the full term. 

This option should not affect your credit file, as long as payments are made as agreed. 

If you go ahead with a term extension, we will write to you during the final month of the 6‑month period to give you the option to return to your original mortgage term. 

If your situation changes before the review date and you would like to return to your original term, you will need to contact us. 

Any ask to lower your mortgage term after the 6 month period will need an appointment with our Mortgage Advice Team. This is so we can check that the payments are affordable for you. You can book an appointment by completing our online form, or by calling us on 0345 601 0014*(Monday to Friday, 8am to 6pm). Appointments are available Monday to Friday 8am to 8pm, and Saturday 9am to 3pm.