Nationwide Building Society has announced it is to restrict the maximum LTV of its interest-only mortgages to 75%.
The lender said that, from 6 April, Nationwide and The Mortgage Works (TMW) will reduce the maximum LTV allowed for residential interest-only loans from 85% to 75% LTV.
A spokesperson for Nationwide said: "We have restricted our interest-only lending to reflect the current market position."
The change will apply to all new lending.
The move follows Lloyds Banking Group last week, which saw it cut the maximum LTV on Halifax-branded interest-only mortgages from 85% to 75%.
Lloyds said that the move, which also takes effect from 6 April, was intended to bring all its brands in line with each other and provide a single, consistent policy approach.
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