Interest-only home-owner mortgages fell by 5.4% to 664,000 final yr in comparison with 12 months earlier than, the most recent knowledge from UK Finance reveals.
The newest figures from UK Finance’s interest-only mortgages knowledge for 2023 exhibits that partial interest-only house loans fell by 9.9% to 200,000 over the identical interval.
The complete interest-only mortgage inventory has been slashed by 73% in quantity and 56% in worth since 2012 when the affiliation began gathering knowledge.
Although the general interest-only inventory continues to fall, the variety of interest-only loans at larger loan-to-values went up by 2.9% in 2023.
However, loans at these larger LTVs now make up simply 5% of the whole, in contrast with 36% in 2012.
Meanwhile, the variety of interest-only loans set to mature by 2027 lowered by 28.4% in 2023 to 187,000 loans.
UK Finance director of mortgages Charles Roe states: “Although the mortgage market noticed tough situations in 2023, most interest-only debtors continued to repay on or forward of schedule. The common communications from lenders could have helped guarantee interest-only debtors remained on observe to repay.”
“The variety of interest-only mortgages has dropped annually because the finish of the monetary disaster and fell once more final yr to round 1 / 4 of the quantity seen in 2012.”
“The variety of debtors who didn’t repay when their mortgage ended remained very low and most of those debtors did repay inside a couple of months of the time period ending. If you might be struggling along with your mortgage repayments, please attain out to your lender as quickly as doable. Lenders supply a spread of help to anybody nervous about their funds, with groups of educated consultants prepared to assist.”
