Halifax has added an interest-only calculator to its broker hub.  

The lender says the software allows advisers to see the maximum loan it can offer customers on an interest-only, or a part-interest-only basis, particularly when using its sale of mortgaged property repayment plan. 

It adds that the calculation on the sale of mortgaged property repayment plan will take into account the various tiers for the amount of equity needed. 

The move comes after feedback from brokers. 

There were 664,000 pure interest-only homeowner mortgages outstanding at the end of 2023, 5.4% fewer than the year before, according to UK Finance data from June. 

It adds that there were 200,000 partial interest-only homeowner mortgages outstanding at the end of 2023, 9.9% fewer than in 2022. 

This is a decline from 2012 when these mortgages were at their peak, taken up by some 3 million households. 

At the time, the Financial Conduct Authority warned that around 1.3 million people who held these loans were not on track to have enough savings to pay off the principal debt when it fell due.