UK FINANCE REVEALS NUMBER OF INTEREST-ONLY MORTGAGES HALVES IN SIX YEARS
The number of interest-only mortgages has almost halved in the past six years, UK Finance figures reveal.
There are currently 1.7 million outstanding interest-only mortgages (including partial interest-only), down 46 per cent since 2012.
Commenting on the data, Jackie Bennett, Director of Mortgages at UK Finance, said:
“The number of outstanding interest-only loans has halved in the past six years, with a particularly steep decline in higher loan-to-value mortgages.
“Many borrowers continue to redeem ahead of schedule or switch to a repayment mortgage.
“However, there remains plenty more work to do over the coming years to ensure that those remaining borrowers who have so far been reluctant to engage have viable repayment plans in place.
“We continue to encourage all borrowers with interest-only mortgages to contact their lender as soon as possible, as the sooner they do so the more options will be available.
“UK Finance will also be developing new best practice for lenders in this area, to reflect the changing regulatory landscape and help the industry engage successfully with more borrowers.”
Read the UK Finance news release 17th May 2018 in full click here.