Interest-only mortgages

Data Published on 24/06/2019

INTEREST-ONLY MORTGAGE BOOK SHRINKS AGAIN

Number of interest-only loans continues to fall

  • There were 1,023,000 pure interest-only homeowner mortgages outstanding at the end of 2019, 8.9 per cent fewer than in 2018.
  • In addition there were 318,000 partial interest-only (part and part) homeowner mortgages outstanding at the end of 2019, 11.7 per cent fewer than in 2018.
  • The total interest-only mortgage stock (including part and part) has reduced by 58 per cent in number and 47 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 (LTV) fell by 26.0 per cent in 2019. Loans at these higher LTVs now make up 11 per cent of the total, compared to 13 per cent in 2018 and 36 per cent in 2012.
  • Additionally, the number of interest-only loans set to mature by 2020 shrank by 72,000 in 2019 to just 54,000 loans, a fall of 57.1 per cent.

Interest-only mortgages update (PDF) Interest-only mortgages update (Excel)