This reduction in the stock of interest-only loans over the past year was substantial. It represented about $ billion of loans (out of a total stock of interest-only loans of almost $ billion in late 2016).
While many of the customers switching chose to do so in response to the higher rates on interest-only loans, there are likely to have been some borrowers who had less choice in the matter. Some borrowers may have preferred to extend their interest-only periods but may not have qualified in light of the tighter lending standards.