FCA publishes Mortgage Charter uptake data

The FCA has this morning published a report showing that, in the latest 3-month period (November 2024 to January 2025), around 280,000 mortgages locked into a new deal up to 6 months ahead of maturity.

This compares to around 377,000 mortgages in the previous 3-month period (August to October 2024).

In addition, the number of mortgages that, after locking into a new deal up to 6 months before maturity, subsequently locked into an alternative deal, fell from around 102,000 in August to October 2024 to around 27,000 in November 2024 to January 2025.

Additionally, around 164,000 mortgages have temporarily reduced monthly payments via the new FCA rules. Newspage asked brokers for their views, below.

Riz Malik, independent financial advisor at R3 Wealth said, “The Mortgage Charter has been a lifeline for many, softening the blow of rate hikes. But at some point, the support measures may inevitably wind down, and borrowers must prepare for higher costs.

“If that happens, the repossession numbers could increase drastically.”

Elliot Culley, director at Switch Mortgage Finance said, “It’s not surprising to see the figures reducing for borrower who subsequently locked into an alternative deal.

“Interest rates, more often than not, rose in that period leaving borrowers in a situation where the first deal was normally the best deal available.

“The mortgage charter has helped many with the rise in living costs, but it appears many are not returning to previous terms which may lead to some problems later down the line.”

Patricia McGirr, founder at Repossession Rescue Network said, “The mortgage market’s “stability” is a mirage.

“As options vanish and escape routes collapse by 74%, borrowers find themselves trapped, not protected. Over 160,000 homeowners have been forced into term extensions or interest-only payments, moves the FCA misleadingly calls “temporary.”

“The reality is these desperate measures rarely reverse, leaving homeowners servicing mounting debt for decades longer. The FCA’s celebration of ‘only’ 186 official repossessions masks a grimmer truth, distressed homeowners are increasingly surrendering properties voluntarily before formal proceedings, figures that never appear in official statistics.

“As borrowers struggle to stay afloat, lenders systematically withdraw rescue options while regulators merely document the rising tide rather than prevent people drowning.​​​​​​​​​​​​​”