New figures published by the Council of Mortgage Lenders (CML) have highlighted a considerable annual reduction in the level of interest-only mortgage debt in the UK. According to CML, home owners in the UK with interest only mortgages are taking action to reduce the risk of not being able to repay their loan when it matures.

Based on a CML survey representing around 96% of the market, at the end of 2013 there were an estimated 2.2 million pure interest only loans outstanding, and a further 620,000 part interest only, part repayment mortgages outstanding on lenders' books. Compared to 2012 this represents a fall of around 300,000 or 12% of pure interest only mortgages and around 90,000 or a 13% fall in part mortgages.

The regulator, mortgage lenders and the CML are collaborating very effectively so far to help interest only borrowers manage their loans and avoid surprises when their loans mature. This work will continue, not just over the next year but over the long term," said CML director general Paul Smee.