Mortgage Charter vs MCOB 13 vs Section 36 AJA 1970

If you fall behind on mortgage payments, three different frameworks may protect you. They overlap and reinforce each other. This comparison shows what each provides.

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Feature	Mortgage Charter	FCA MCOB 13	s.36 AJA 1970
Type	Voluntary industry commitment	Regulatory rules (binding)	Statutory court discretion
When it applies	Before missed payments (forbearance)	Throughout the arrears process	After court possession proceedings issued
Forbearance options	6-month payment holiday, interest-only switch, term extension	Various — capitalisation, term extension, switch, payment holiday	Court can suspend possession or grant time to pay arrears
Affects credit file	No (if charter forbearance taken before missed payment)	May appear as arrears once missed payment recorded	Existing arrears and any CCJ already on file
Enforcement	FCA can investigate non-compliance	FCA can fine and require compliance	Court order; appeal to Crown Court
Coverage	50+ lenders representing 90% of UK mortgages	All FCA-regulated mortgage lenders	All mortgages and second charges
Time you have to engage	Best engaged before first missed payment	From first contact about difficulties	At the possession hearing itself

These protections overlap. Engaging early (Charter), exercising rights during arrears (MCOB), and challenging at court (s.36) provide layered protection. Most repossessions are avoidable if you engage with the lender from the first sign of difficulty.

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Mortgage Arrears and the Pre-Action Protocol

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Mortgage Charter Protections

The Mortgage Charter is a voluntary agreement between HM Treasury, the FCA, and most major UK mortgage lenders (covering around 90% of the residential market). It gives borrowers struggling with payments specific forbearance options that protect their credit file and home. This guide explains what the Charter offers, how to invoke it, and what to do if your lender is not signed up.

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Defending Mortgage Repossession: Your Rights at Court

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Disclaimer

The information on this page was correct at the time of writing. Amounts, thresholds, and rules may change. Always check the latest official guidance.