“Many say to us they knew the problem was on the horizon for them, but ‘life got in the way’,” Osman said. “The FCA established guidance more than a decade ago to ensure lenders treat interest-only customers fairly as their mortgages mature.”
Osman pointed to a renewed regulatory focus as the sector moves towards what the Financial Conduct Authority has described as a maturity bulge in the early 2030s. He said the FCA has convened an Industry Working Group to review existing guidance and support outcomes as more loans approach term end. In his account, the regulator’s research anticipates maturity peaks in 2031 and 2032, with “tens of thousands of mortgages reaching term without credible repayment plans.”
Against that backdrop, Osman said interest-only expiry is now a leading prompt for later-life borrowers considering equity release, particularly where affordability and age restrict mainstream choices.
He argued that timing is increasingly decisive. Some borrowers, he said, wait too long to engage — either with their lender or an adviser — reducing the scope for orderly solutions such as term extensions, partial repayments, retirement interest-only products, downsizing, or equity release where suitable. He also noted that lender discretion can be a factor when extensions are sought, and that this can depend on early engagement and individual circumstances.
“We have encountered situations where clients only approach us with weeks to go before maturity, leaving little time to arrange suitable alternatives,” Osman related. “A proactive approach can make all the difference.”