The Charter - introduced in 2023 - was signed by 49 lenders covering about 90% of the UK mortgage market and is designed to offer borrowers greater flexibility.
Between May and July 2025, the regulator reports that almost half a million - 489,000 - mortgages were locked into new deals up to six months before maturity, compared with 341,000 in the previous three-month period. Of those, 104,000 subsequently switched again to an alternative deal before their new one began, double the number seen earlier this year. Around 191,000 mortgages made use of temporary payment reductions under the FCA’s new rules, and since July 2023, about 278,000 mortgages—roughly 3.1% of regulated contracts—have reduced payments either by moving to interest-only or by extending their term. However, just 1,179 extensions have been reversed, suggesting most borrowers prefer short-term interest-only arrangements.
Repossession figures remain low under the Charter’s protections. Only 254 properties were taken into possession within 12 months of a first missed payment, and lenders said these cases were mostly voluntary surrenders or abandoned homes.
The FCA cautioned that the figures should be treated as indicative rather than definitive due to the way that data is collected.
The report concluded: "We will publish this data quarterly while we continue to ask firms to report on Charter uptake."
"We will closely monitor the mortgage market, including through market and consumer level data and firm engagement. We will use data on uptake of the Government’s Mortgage Charter to understand how it has been used, and to inform our policy and supervisory approach."
