The chancellor Rachel Reeves met with the UK’s six largest banks and building societies, alongside UK Finance and the economic secretary, on Thursday to assess the impact of the conflict in Iran on households and small businesses.

Lenders agreed to contact around 1.6 million customers whose fixed-rate mortgage deals are due to end this year, outlining available options and access to support ahead of any changes to repayments. The chancellor also reaffirmed the Mortgage Charter, which allows borrowers to secure a new rate up to six months in advance or switch deals with their existing lender without a new affordability check.

The charter also includes temporary measures such as switching to interest-only payments for up to six months, with support discussions not affecting credit scores. Lenders reported an increase in customer enquiries, although data indicates lending remains stable and arrears are low.

With around 86% of mortgages on fixed rates, most borrowers are not immediately exposed to short-term market fluctuations

Reeves commented: “In uncertain times, people need clear reassurance and practical help. That’s why I’ve brought the biggest lenders together to step up support and make sure anyone who is worried can access the mortgage charter options quickly, without their credit score being affected.”