At the end of 2014, CML members reported around 1.9 million pure interest-only mortgages outstanding and about 460,000 part interest-only mortgages. This is around 300,000 fewer pure interest-only mortgages and 160,000 part interest-only mortgages than a year earlier.
The figures came as the CML outlined the progress it had made to check that borrowers with interest-rate mortgages have plans for how they will repay their loans at maturity.
Paul Smee, CML Director General, said: “The continued decline in interest-only mortgages outstanding confirms our perception that many borrowers are firmly on top of this issue, and successfully making plans to manage their loans to ensure they are not faced with a payment shortfall at maturity.
“But as an industry, we clearly still have work to do to trigger more borrowers to respond to their lenders' attempts to understand their intentions and help them plan ahead for the maturity of their loans.”
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