1.6 million are on an interest only mortgage with no repayment plan.

Around 1.6 million UK mortgage holders have an interest only mortgage without an adequate repayment vehicle in place.

Unbiased.com data reveals that there are 1 in 7 house-holds which is 1.6 million mortgage holders, who are only paying off mortgage interest each month. These house-holds are neither repaying the capital on a monthly basis or saving anything to pay off the mortgage debt at the end of the term.

Karen Barrett who is the chief executive at unbiased.co.uk, commented on the figures saying that with many UK house-holds experiencing an income squeeze, it is hardly surprising to find many people trying to save money through staying on an interest only mortgage.

Almost all UK lenders offering interest only products have introduced restrictions by reducing loan to value levels and tightening lending criteria.

The FSA are also demanding changes to interest-only mortgages approved without a repayment vehicle. However chief executive Martin Wheatley has said that in reality the regulator may be unable to diffuse the interest only time bomb, which could go off when thousands of home-owners find themselves unable to repay the capital owed at the end of their deal.

He added that individuals will need to 'listen to their own advice' as to how to repay the capital owed at maturity. The FSA has attempted to help by proposing a transitional period during which interest only mortgage holders would be allowed to move penalty free to a new deal.

Whatever your reasons for choosing to remortgage contact Deal Direct and we will review all options available to you today.