As of Monday, 3 December 2012, Coventry Building Society will no longer offer interest-only residential mortgages for new lending.
Buy-to-Let interest only mortgages will continue to be offered.
Existing borrowers on interest only will not be able to increase their borrowing on an interest only basis, but they will continue to be able to port their existing mortgage, as they could before.
Colin Franklin, Sales and Marketing Director, Coventry Building Society, said: “Residential interest-only mortgages have declined to less than 2 per cent of all residential mortgage applications. We have therefore decided the time is right to leave this market”.
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