From 1st July the Council of Mortgage Lenders is integrated into a new trade association, UK Finance. For the time being, all UKF mortgage information will continue to be published on this website, and UKF member-only mortgage information will only be available here.

UK Finance represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation takes on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. Please go to for wider content and updates from UK Finance.

Last updated: 14 May 2014

This guidance is for: Lenders

In 2010 the CML started working with members to identify and mitigate repayment and conduct risks associated with existing interest-only mortgages, which may arise in particular circumstances. The CML’s interest-only toolkit is intended to help and inform lenders to develop policies and actions related to existing interest-only mortgages.

The toolkit is not prescriptive – rather it sets out a framework which we believe will allow members to develop a strategy which is appropriate to their business model and, crucially, helps them to meet the needs of their current interest-only customers.

The options set out in the toolkit only apply to residential owner-occupied mortgages, where the property is the borrower’s primary home. As such buy-to-let, second homes and equity release mortgages are excluded.

The content of this toolkit has been reviewed to reflect the rules which will come into force on 26 April 2014 as a result of the Mortgage Market Review (MMR) insofar as they impact the interest-only back book. The overall content will also be reviewed to reflect the outputs from the FCA’s thematic work on the maturity of interest-only mortgages. The toolkit is a living document and will continue to be reviewed and updated when necessary.