A magnetic tunnel junction (MTJ) is disclosed wherein first and second interfaces of a free layer (FL) with a first metal oxide (Hk enhancing layer) and second metal oxide (tunnel barrier), respectively, produce perpendicular magnetic anisotropy (PMA) to increase thermal stability. In some embodiments, metal clusters are formed in the FL and are subsequently partially or fully oxidized by scavenging oxygen to generate additional FL/oxide interfaces that enhance PMA, provide an acceptable resistance x area (RA) value, and preserve the magnetoresistive ratio. In other embodiments, a continuous or discontinuous metal (M) or MQ alloy layer within the FL reacts with scavenged oxygen to form a partially oxidized metal or alloy layer that enhances PMA and maintains acceptable RA. M is one of Mg, Al, B, Ca, Ba, Sr, Ta, Si, Mn, Ti, Zr, or Hf, and Q is a transition metal, B, C, or Al.