New research from the FCA has revealed that certain mortgage borrowers who just make interest payments on their loans are overly optimistic about their capacity to pay off their total debt. Finding that while 36% said they might have a shortfall in funds when it came to making the final payment, the estimated actual figure was likely to be 46%.

With the number of borrowers with interest only rates sitting just under one million, the FCA, estimate that within the next two years, over 750,000 households in the UK could face the risk of defaulting on their mortgage payments. Notably, the number of defaults observed in Q2 has reached its highest point since 2009.

In light of this, Eligible, the UK’s leading AI servicing tool used by some of Britain’s leading mortgage lenders, addresses what banks can, and should be doing, to track the vulnerability of their customers defaulting months before it happens.

Research from the FCA found that close to half the population reportedly have low confidence when it comes to making decisions surrounding money, and as many as three-quarters of consumers have admitted to feeling anxious when interacting with mobile banking services, there is an increasing need for communication that is timely and presented in accessible format. Eligible works as an AI-driven insight tool, facilitating meaningful and timely conversations, that revolves around tailored financial support.

Used by a host of Britain’s leading lenders, the white-label platform works by using AI technology to analyse customers’ financial and behavioural data to predict what information they need to best support their financial situation. Using this data, banks can make sure that the information their customer receives is relevant and personalised supporting them in making informed decisions about financial products and services.