Interest-only mortgages

Published on 21/06/2023

• There were 702,000 pure interest-only homeowner mortgages outstanding at the end of 2022, 6.9 per cent fewer than in 2021.
• In addition there were 222,000 partial interest-only (part and part) homeowner mortgages outstanding at the end of 2022, 11.9 per cent fewer than in 2021.
• The total interest-only mortgage stock (including part and part) has reduced by 71 per cent in number and 56 per cent in value since 2012 (when these data were first collected).
• In particular, the number of interest-only loans at higher (over 75 per cent) loan-to-values fell by 33.3 per cent in 2022. Loans at these higher LTVs now make up 5 per cent of the total, compared to 7 per cent in 2021 and 36 per cent in 2012.
• Additionally, the number of interest-only loans set to mature by 2027 shrank by 73,000 in 2022 to 261,000 loans, a fall of 21.9 per cent.