The number of pure interest-only homeowner mortgages outstanding at the end of 2019 fell 8.9 per cent from the previous year.

However, the number of interest-only loans at higher LTVs (over 75 per cent), fell by 26 per cent in 2019.

The data comes from UK finance, which says the number of interest-only deals at the end of last year was 1,023,000.

There were 318,000 partial interest-only homeowner mortgages found to be outstanding at the end of 2019, 11.7 per cent less than 2018.

UK Finance says the total interest-only mortgage stock (including part and part) reduced 58 per cent in number and 47 per cent in value since 2012, when the data was first collated.

UK Finance managing director of personal finance Eric Leenders says: “Mortgage lenders have been actively contacting customers with interest-only mortgages to help them to consider their options ahead of the point where balance of the mortgage falls due. This has helped many customers to better manage their money and since 2012, the number of interest-only mortgage holders has gone down by 58 per cent, with the value of these loans almost halved.

“Additionally, the number of interest-only loans at a higher loan-to-value has also decreased by a quarter in 2019 alone. Like many homeowners at this time, interest-only customers are managing through the hugely uncertain impact of Covid-19 and the industry has a plan to help, so we would recommend that customers contact their lender if they are worried about their finances to discuss the support available to them.”