Interest-only mortgages

Published on 18/06/2024

• There were 664,000 pure interest-only homeowner mortgages outstanding at the end of 2023, 5.4 per cent fewer than in 2022.
• In addition there were 200,000 partial interest-only (part and part) homeowner mortgages outstanding at the end of 2023, 9.9 per cent fewer than in 2022.
• The total interest-only mortgage stock (including part and part) has reduced by 73 per cent in number and 56 per cent in value since 2012 (when these data were first collected).
• Although the overall interest-only stock continues to fall, the number of interest-only loans at higher (over 75 per cent) loan-to-values rose by 2.9 per cent in 2023. However loans at these higher LTVs now make up just 5 per cent of the total, compared with 36 per cent in 2012.
• Additionally, the number of interest-only loans set to mature by 2027 shrank by 74,000 in 2023 to 187,000 loans, a fall of 28.4 per cent.