Fewer people use Mortgage Charter help – FCA

Analysis from the Financial Conduct Authority (FCA) showed around 280,000 mortgages locked into a new deal up to six months before the fixed rate expired, down from 377,000 accounts in the period between August and October 2024. 

The number of people doing so totalled around 93,908 in November, while just 70,786 made use of this support in December. By January, this had risen to around 115,779 people securing a new rate up to six months before their deal ended. 

Additionally, the number of borrowers who secured an alternative deal after locking into a new one up to six months before their product matured dropped from around 102,000 in the period from August to October to around 27,000 between November last year and this January. 

This represented roughly 13,498 people in November, 6,312 people in December and 7,167 people in January. 

From when the Mortgage Charter rules were introduced in July 2023 up until January this year, 164,000 mortgages have temporarily reduced mortgage payments by switching to interest-only. 

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This is included in the 236,000 borrowers who were able to temporarily reduce their monthly mortgage payments by switching to interest-only or extending their mortgage term. This accounted for 2.7% of all regulated mortgage contracts. 

Just 744 term extensions have been reversed since the rules launched, which the FCA said could suggest people wanting to reduce their mortgage payments were more likely to temporarily switch to interest-only. 

In total, 186 properties were repossessed within 12 months of missing the first mortgage payments. 

Lenders reported these were for customer-driven reasons, such as voluntary repossessions or abandoned and vacant properties. 

Some 49 lenders are signatories to the Mortgage Charter, representing more than 90% of the mortgage market.