On 31st May 2016, the Council of Mortgage Lenders (CML) published the statistics regarding the amount of interest only mortgages remaining on the market.[1] The main conclusion from the data is that the amount of outstanding interest-only mortgages has dropped by a ⅓ since they began to collection this data in 2012.
The CML confirmed that 29% of total mortgage redemptions were originally loans with terms that were not set to end until at least 2028. In a majority of cases where new loans were taken out, the new mortgage was on a wholly capital and interest repayment mortgage or a part interest only and part repayment basis at the very least. There has been a great emphasis over the past few years on the importance of having a valid repayment vehicle to pay off the capital at the end of mortgage term and this seems to be making a difference. Plus, lending criteria has become tighter since 2009 on interest only lending which could well be the reason behind these figures.
[1] https://www.cml.org.uk/news/news-and-views/interest-only-taking-stock/
