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<p>The pricing of mortgages is a commercial decision for lenders, including relevant
credit unions, in which the Government does not intervene. However, we recognise this
is a concerning time for mortgage borrowers.</p><p> </p><p>On Friday 23 June the Chancellor
met with the UK’s largest mortgage lenders, UK Finance and the Financial Conduct Authority
to discuss how lenders will provide support for those who encounter problems keeping
up with their mortgage payments. At this meeting, lenders agreed to a new Mortgage
Charter to support borrowers struggling with their mortgage payments that was published
on 26 June. The Charter sets out the standards signatory lenders, which includes some
credit unions, will adopt when helping their customers, including new flexibilities
to help customers manage their mortgage payments over a short period.</p><p> </p><p>The
Charter is in addition to the significant safeguards already in place for consumers
in the mortgage market. Financial Conduct Authority rules require lenders to engage
individually with their customers who are struggling or who are worried about their
payments in order to provide tailored support. The Government has also taken measures
aimed at helping people to avoid repossession, including Support for Mortgage Interest
(SMI) loans, and protection in the courts through the Pre-Action Protocol.</p><p>
</p><p>More widely, the Government is taking forward amendments to the Credit Unions
Act 1979 through the Financial Services and Markets Act (FSMA) 2023 to allow the credit
union sector to grow, by offering a wider range of products and services to their
members. FSMA 2023 is central to delivering the Government’s vision to grow the economy
and create an open, sustainable, and technologically advanced financial services sector.</p>
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