There will be peaks in the coming years when many interest-only mortgages will reach maturity. We develop and promotes industry-wide strategies and good practice on working with interest-only borrowers, to minimise the number who reach maturity without adequate repayment plans.
Last updated: 28 November 2016
Though new interest-only lending is less common these days, many lenders still have substantial back-books of interest-only loans. FCA research indicates many of those who have these loans may not be able to meet the capital payment when it falls due. The industry is working with these borrowers to ensure early engagement and to help customers find a solution.