Yorkshire Building Society is reviewing its stance on interest-only mortgages - four years after it stopped offering this type of deal to new borrowers.
A spokesperson for the lender said: “It is a market that we are reviewing and we are looking at our offering. We do not have any plans at the moment.”
The building society tightened its lending criteria for interest-only residential mortgages in 2012, demanding a 50 per cent deposit from new borrowers.
Yorkshire scrapped its interest-only offering altogether in 2013 ahead of the Mortgage Market Review, which introduced tougher regulations surrounding repayment strategies.
A flood of interest-only mortgage maturities is due to take place in 2017.
While not all lenders and brokers wanted to put a figure on expected growth, all agreed that the hundreds of thousands of interest-only maturities due over the next few years would be a “game-changer” for the industry.
The FCA has estimated almost half of those with interest-only mortgages would not be able to repay their loan in full.
Of those, 50 per cent would have a shortfall of more than £50,000.
Anticipating potential defaults, in 2013 the FCA requested lenders to contact their customers to warn them of their upcoming repayment date.