Nearly 900,000 mortgages were locked into a new deal up to six months before maturity during the first half of 2026 as borrowers sought greater certainty over their future payments, new FCA data has revealed.
A total of 381,364 mortgages were secured early during the second quarter, following 499,271 in Q1, taking the first-half total to 880,635.
The figures come from lenders signed up to the Government’s Mortgage Charter, which allows customers to secure a new deal up to six months before their existing fixed rate ends and request a better like-for-like deal before it starts if one becomes available.
The data provides further evidence of borrowers engaging with refinancing decisions well before maturity at a time when the direction of mortgage pricing has become increasingly uncertain.
AFFORDABILITY PRESSURES
The FCA figures also show continued use of measures designed to reduce borrowers’ monthly payments.
Around 22,400 mortgages moved temporarily to interest-only payments or had their term extended during Q2, up from approximately 20,100 during the first quarter.
Between the introduction of the Mortgage Charter in July 2023 and the end of June 2026, around 354,000 mortgages had monthly payments reduced through one of the two measures.
That represents around 3.9% of regulated mortgage contracts, according to the regulator.
Its latest figures also show 376 properties were repossessed within 12 months of the borrower first missing a payment between July 2023 and June 2026.
LENDING JUMPS
Separate mortgage lending figures published today point to a sharp increase in activity during the second quarter.
Gross mortgage advances rose 11.1% quarter-on-quarter to £77.4bn and were 31.7% higher than during Q2 2025.
The outstanding value of residential mortgage loans increased by 0.8% during the quarter to £1.76trn, 3.1% higher than a year earlier.
Meanwhile, new mortgage commitments – lending agreed to be advanced in coming months – increased by 1.4% to £79.2bn and were 1.3% higher year-on-year.
The figures come with Bank Rate currently at 3.75%. The Bank of England held rates in July by six votes to three, with three Monetary Policy Committee members voting for an increase to 4% amid concerns over the inflationary impact of higher energy prices.
‘CONSIDER OPTIONS EARLY’
Damien Burke (main picture, inset), head of regulatory practice at Broadstone, said: “Nearly a million borrowers took advantage of measures included in the FCA’s Mortgage Charter to proactively manage their mortgage costs by locking in a new deal up to six months ahead of maturity in the first half of 2026.
“With mortgage rates beginning to rise again, borrowers approaching the end of fixed-rate deals should consider their options early so that they are able to secure the best rates available to them.
“The number of borrowers using temporary measures such as switching to interest-only or extending their mortgage term highlights that affordability pressures remain prevalent. While these options can provide valuable breathing space for households, they need to form part of a wider financial plan to ensure they remain sustainable over the longer term.”
BESPOKE APPROACH
And he added: “We are increasingly seeing lenders develop more bespoke approaches to affordability assessments, using a broader understanding of borrowers’ individual circumstances rather than relying solely on traditional measures.
“The FCA released a report over the past week on the use of Open Finance in Mortgages to create policy that encourages the development of mortgage-readiness tools, richer affordability evidence and earlier identification of payment pressure.
“This should help ensure that those who can sustainably afford to borrow are not unnecessarily excluded from the market while maintaining appropriate safeguards around affordability.”
