Around 13,000 mortgages saw a reduction in monthly payments in November and December, due to a temporary switch to interest-only or a term extension.

This is according to new data released by the Financial Conduct Authority (FCA), which also showed that around 232,000 mortgages locked into a new deal up to six months ahead of maturity at the end of last year.

Introduced in June 2023, the Government’s Mortgage Charter contains commitments over and above FCA requirements made by mortgage lenders. There are 49 signatories, representing around 90% of the mortgage market, with commitments including allowing customers to lock in a new deal up to six months ahead of the end of a fixed rate deal.

Other commitments include not forcing a borrower to leave their home without their consent, unless in exceptional circumstances, in less than a year from their first missed payment. Under the rules, customers up to date with their payments are also permitted to switch to interest-only payments for six months or extend their mortgage term with the option to revert to their original term within six months.

The FCA has today published data for November and December 2025, which showed that around 48,000 mortgages locked into a new deal up to six months before maturity, before subsequently locking into an alternative deal.

Around 214,000 mortgages have temporarily reduced monthly payments via these FCA rules.

Between July 2023 and December 2025, the monthly payments on around 311,000 mortgages were reduced as people switched to temporarily paying interest-only or extended their mortgage term. This equates to 3.5% of regulated mortgage contracts.

The FCA data also showed that just 1,584 term extensions were reversed, which the regulator said could indicate that borrowers seeking a temporary reduction in their payments are more likely to opt for an interest-only period.

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