As the Christmas period approaches and household budgets come under extra pressure, many homeowners start searching for ways to manage their outgoings. Recently, however, the Financial Conduct Authority (FCA) has issued a firm warning about misleading information online that could leave borrowers worse off¹.

A number of websites and social media posts are promoting so-called “promissory notes”, claiming they allow borrowers to avoid making their mortgage payments. These claims may appear convincing at first glance, but they are incorrect and can lead to serious financial consequences¹.

What is a promissory note, and why the FCA is warning against it?

The documents being sold typically claim that¹:

• a “trust” or third party will take responsibility for your mortgage
• or that the note itself settles the mortgage in full
• or that lenders must legally accept it as payment

The FCA has confirmed that these statements are false. A promissory note is not a recognised method of paying a mortgage, and sending one to a lender does not remove the requirement to make your normal payments¹.

Some people have paid significant sums for these documents, believing they would help, only to find that they hold no value.

Why relying on these claims can cause real harm

Using a promissory note does not pause or settle a mortgage. This means borrowers may unknowingly fall into arrears if they stop making their usual payments. This could¹:

• impact their credit file
• increase the total amount they owe
• reduce future mortgage options
• in the worst cases, place their home at risk

These schemes are often targeted at homeowners who are already under financial pressure, which can make the situation even more difficult.

What you can do if you are concerned about your mortgage payments

If you are worried about upcoming payments, please do not rely on information from unregulated online sources. There are legitimate steps you can take.

1. Contact your lender as soon as possible

Lenders must treat customers in financial difficulty in a fair and considerate way. Depending on the circumstances, they may explore temporary or longer-term options with you. These vary case by case and are not guaranteed.

2. Speak to your mortgage broker

If you would like help understanding the information provided by your lender or would like to discuss your mortgage more generally. While we cannot make decisions for your lender, we can help you understand what certain options may mean for you.

3. Consider free, confidential debt support

If you feel under significant financial strain, reputable organisations can offer guidance on budgeting and debt management. These include:

• Citizens Advice²
• StepChange Debt Charity³
• National Debtline⁴
• MoneyHelper⁵

These services are independent and may help you review your wider financial position.

A final reminder for homeowners

During financial stress, it can be tempting to believe in a simple solution. However, anything claiming to cancel a mortgage instantly or remove the need to make payments should be treated with caution. The FCA has clearly warned that promissory notes do not work and may cause real financial harm¹.

If you have any questions about your mortgage or want help understanding the process, we are here to support you.

References:

1. FCA. (2025). Struggling with your mortgage? Avoid risky offers. Available at: https://www.fca.org.uk/consumers/struggling-mortgage-avoid-risky-offers     [Accessed 25 Nov. 2025].
2. Citizens Advice. (2025). Citizens Advice. Available at: https://www.citizensadvice.org.uk/    [Accessed 25 Nov. 2025].
3. ‌ Stepchange.org. (2025). StepChange Debt Charity. Free Expert Debt Help & Advice. Available at: https://www.stepchange.org/   [Accessed 25 Nov. 2025].
4. Nationaldebtline.org. (2023). Free Debt Advice and Support | National Debtline. Available at: https://nationaldebtline.org/ [Accessed 25 Nov. 2025].
5. MoneyHelper (2025). Free and impartial help with money, backed by the government | Available at: https://www.moneyhelper.org.uk/en [Accessed 25 Nov. 2025].

‌‌Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

All the information in this article is correct as of the publish date 27^th November 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

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