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How are we helping our customers?
The UK Government has announced new support for borrowers who are struggling with their mortgage payments. We're committed to helping our customers through this difficult time and we're pleased to be part of the UK Government initative to help ease the pressure on mortgage customers.
The UK Mortgage Charter requires lenders to provide two types of mortgage support. It is important you consider whether this type of support is best for your circumstances.
Support for our mortgage customers
Royal Bank of Scotland has signed up to the Mortgage Charter to support our mortgage customers. This means that we’re looking at ways we could help ease the financial pressure of increasing mortgage payments.
What is our commitment?
If you have a residential mortgage with us and you're up to date with your mortgage repayments, there are two options available which could help reduce your current mortgage repayments in the short term:
- Amend your current mortgage repayment type to interest only for six months.
- Increase the term of your current mortgage with the ability to revert back to your original term within six months, if you wish.
You can only choose one of the above options, you won't need an affordability check and it won't affect your credit score.
- We have highly trained staff to provide you with personalised support if you are struggling financially.
- You won't have your home repossessed within 12 months from your first missed payment.
When your 6-months interest only period ends, your monthly payments will increase as you will resume paying both the Capital and Interest elements of your mortgage. By increasing your term, the total amount of interest you pay back overall will increase. If you revert back to your original term within six months, your monthly payments will also increase.
If you’re eligible to switch to a new deal, you may want to consider when you would like your cost of living support to start. You can chose a new rate, and time your chosen support option to start when your new rate starts, or chose to start your relief before your new rate starts. This will ensure that when you view the cost of living support options, you will be able to see how they impact your payments on your new mortgage rate.
If you would like to see your options, sign into Manage your Mortgage.
6-months interest only
As an example only, a customer with an £179,000 current mortgage balance and a remaining term of 23 years on a typical rate of 6.29%, would pay an additional £24 each month during their remaining term as a result of taking the 6 month interest-only option.
As a result of extending your mortgage term, you will pay more overall. As an example only, a customer with an £179,000 current mortgage balance, extending their term from 23 years remaining to 35 years with a 2-year fixed rate of 6.29% would reduce their monthly payments by £153 per month but pay an additional £112,140 interest over the entire life of the Mortgage.
This is just a representative example and your actual payments will depend on the amount of your mortgage, the remaining term and the rate applicable during the time of your fixed or variable rate and the rate when that ends. The longer your mortgage term the more interest you will pay over the life of the mortgage.
Further help to support with the rising cost of living in the UK
Discover ideas that could make you feel more in control and help your money go further. Get expert tips and find out how to access support, all in one place.