Lenders representing around 85% of the mortgage market have signed up to the new mortgage charter.

Participating mortgage lenders, led by UK Finance, will launch a communications campaign ensuring borrowers know what to expect when they contact their lender.

Lenders agreed to permit customers who are up-to-date with their payments to switch to interest-only payments for six months or extend their mortgage term to reduce their monthly payments. Borrowers will have the option to revert to their original term within six months by contacting their lender.

A borrower will not be forced to leave their home without their consent unless in exceptional circumstances, in less than a year from their first missed payment.

From July 10, customers approaching the end of a fixed-rate deal will have the chance to lock in a deal up to six months ahead. They will also be able to manage their new deal and request a better like-for-like deal with their lender right up until their new term starts, if one is available.

The details of the charter were published on gov.uk.

The Government cautioned that monthly payments after support may be higher than they otherwise would have been and overall costs over the life of the mortgage could be higher.

Affordability will need to be checked if borrowers wish to permanently convert to an interest-only mortgage, or where the mortgage term is proposed to be extended beyond the borrower’s expected retirement date.

– Here is a list of lenders who have signed up to the mortgage charter:

Barclays

NatWest, including RBS and Ulster Bank

Lloyds, including Halifax and Scottish Widows

Nationwide Building Society

HSBC, including First Direct

Santander

Virgin Money, including Clydesdale Bank and Yorkshire Bank

TSB

Scottish Building Society

Buckinghamshire Building Society

Newcastle Building Society

Hinkley & Rugby Building Society

Nottingham Building Society

Principality Building Society

Suffolk Building Society

West Bromwich Building Society

Loughborough Building Society

Family Building Society

Coventry Building Society

Yorkshire Building Society

Skipton Building Society

Leeds Building Society

Bath Building Society

Ecology Building Society

The Vernon Building Society

Leek Building Society

Furness Building Society

Melton Mowbray Building Society

Glasgow Credit Union

Darlington Building Society

Progressive Building Society