The Council of Mortgage Lenders (CML) has announced a reduction by a quarter in the total number of outstanding interest-only loans over the past 2 years, with a 16% reduction over the past year alone.

Although around a quarter of the reduction is due to the loans being repaid, a third of the loans were repaid before maturity suggesting that many borrowers are successfully remortgaging on full repayment terms.

The CML have been working with third party advice providers to help customers who are not able to repay their mortgages and are assisting lenders to develop strategies to engage and discuss repayment plans with their customers.