The Dudley Building Society has brought back an interest only repayment option for its new residential 1.05% discount for term product.

The mutual has also increased maximum LTVs from 75% to 80% on its two year discount and two, three and five-year fixed rate residential products.

The Dudley re-entered the market at the end of August and is launching products in a “phased fashion.”

Sam Ward, commercial director at the Dudley, said: “Having launched a series of new and exciting products in specialist niches such as shared ownership, right to buy, self-build and holiday let funding, the Society feels the time is right to look again at the core residential mortgage proposition.

“To that end, we have taken the next step by improving residential LTVs and reintroducing an interest only repayment option via a new discounted product.

“We are tuning our criteria in a way that increases our caseload in proportion to our ability to process, thus maintaining our reputation for not only meeting the expectation of our customers for competitive funding solutions, but also providing a fast reliable service to our introducer partners.”