Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

More Borrowers Use Mortgage Charter Measures to Manage Payments in Q2

The Financial Conduct Authority (FCA) has reported a rise in the number of people using Mortgage Charter measures to manage their mortgage payments in the second quarter of 2026. More borrowers switched to interest-only mortgages or extended their mortgage terms compared to the previous quarter.

According to FCA data, 22,400 people either switched to an interest-only mortgage or extended their term in Q2, up from 20,100 in Q1. Of these, 15,200 switched to interest-only mortgages, an increase from 14,578 in the previous quarter and higher than 13,450 in the same period last year. The number of people extending their mortgage term rose to 7,173 in Q2, compared to 5,543 in Q1 and 7,092 in Q2 last year.

The FCA also reported that 381,364 people nearing the end of a fixed rate mortgage secured a new rate at least six months ahead of time in Q2, which is a decrease from 499,271 in Q1. Additionally, 48,913 borrowers secured a new rate six months before their deal ended and then locked into an alternative deal, down from 52,394 in the previous quarter.

There was an increase in the number of properties taken into possession, with 34 properties repossessed in Q2, up from 25 in Q1. However, this figure is lower than the 37 properties repossessed in Q2 last year.

Since the introduction of the Mortgage Charter in July 2023 and up to June 2026, around 354,000 mortgage payments have been reduced through temporary switches to interest-only or extended mortgage terms. This represents approximately 3.9% of regulated mortgages. Over the same period, 376 properties have been repossessed within 12 months of the first missed payment.

These trends may be relevant for UK letting agents and inventory clerks, as changes in mortgage payment arrangements and repossessions can impact rental demand and property turnover.