The latest mortgage charter absorption data shows that in the three months ending January, there were about 280,000 new mortgage transactions for up to six months.
This is compared to about 377,000 mortgages in the past three months, according to data compiled by the Financial Conduct Authority.
Additionally, the number of mortgages after locking in the first six months of maturity subsequently locked in an alternative deal, down from around 102,000 in August to 27,000 in three months.
The data also found that approximately 164,000 mortgages temporarily reduced monthly payments as part of the FCA’s new rules.
Between July 2023 and January this year, monthly payments for approximately 236,000 mortgages have decreased as people switch to temporarily paying interest only or extending mortgage terms.
This figure accounts for 2.7% of regulatory mortgage contracts.
The data also suggests that only 744 periodic extensions have been reversed, the FCA said, which could indicate that borrowers seeking to temporarily reduce payments are more likely to choose interest-only periods.
In the three months ended January 186, property was recovered within 12 months after the lack of the first payment.
The company reports that these are for customer-driven reasons, such as voluntary property or abandoned/vaccinated property.
