Tanith we have a Retirement Interest Only Mortgage. They are standard products and you repay the capital sum when you downsize, go into care or die, just like equity release, but you pay the interest rather than roll it up.
We took it out last year to help finance an extension we were building.
From what the OP says. I think these people probably have ordinary mortgages. In which case they should have planned ahead. They would always have known that the capital had to be paid back and when. It is too easy to blame the banks/building society, but basic things like this do require individuals to act sensibly and take responsibility for their actions They will have had these mortgages for some time, so have had plenty of time to think about what to do.
The way out for many may be Retirment Interest Only Mortgages or Equity Release.
CUTTING OFF A ROSE BRANCH IN NEXT DOOR'S GARDEN