UK Finance interest-only mortgage data - Precise

17 June 2026

Emily Hollands, Group Head of Intermediary Sales and Distribution, Precise, said:

"The continued fall in interest-only mortgage numbers, as shown in today’s UK Finance data, is broadly positive news, and a testament to the resilience of borrowers who have kept up with their obligations through a challenging few years. The long-term trend of decline in this part of the market reflects improved lending standards, greater regulatory scrutiny and, importantly, borrowers taking a more active approach to managing their mortgage debt. However, it would be a mistake to treat a declining total as a signal that this area of the market requires less attention.

The borrowers who remain on interest-only arrangements may be more complex cases, those who have found it harder to switch to repayment, who face a maturity event in the near term, or whose financial circumstances have changed since they first took out their mortgage. This cohort still needs specialist support, and the role of the intermediary in identifying and helping these customers has never been more important. Having a trusted adviser to help them review their repayment strategy, explore their options and plan ahead is invaluable, particularly as a significant number of these loans approach maturity.

The FCA’s latest consultation, as part of its wider mortgage rule review, reinforces this direction of travel. It’s looking at how the interest-only framework can evolve to provide greater flexibility, while maintaining strong consumer protections.

What this data ultimately reflects is a market doing what it should: transitioning in an orderly way, with borrowers supported by strong guidance and lenders acting responsibly."