This document was created to be a resource for mortgage lenders managing a back book of maturing interest-only (IO) mortgages. It was originally produced in 2012 by the Council of Mortgage Lenders (CML), a predecessor organisation to UK Finance. The toolkit was then updated in 2013 and 2018 to reflect new FCA guidance (FG7/13) and changes in the market and regulatory environment 

This toolkit is not meant to be prescriptive. Its purpose is to share best practice from the lender community, so lenders may refine their communication and operational policies to meet the needs of their interest-only borrowers. All of this best practice guidance is set within the overarching regulatory frameworks established by the FCA, PRA and in guidance such as FG7/13. This toolkit does not replace any of the regulatory frameworks; rather it simply shares the best practice and recognises that one size does not fit all when dealing with the varied approaches to managing IO mortgages. 

This document will be reviewed annually and updated as necessary to reflect changes in the IO mortgage market. The complete toolkit is only available to members of UK Finance's mortgage stream. An abridged version will be made available to the public. Members are asked not to share the document externally. 

Last updated: 5 November 2018