Precise Mortgages has withdrawn the interest-only option from its Home Owner range.

Buy-to-let loans and bridging loans are unaffected by this change.

The lender says it has taken this decision due to the “extremely low take up of interest-only” on its Home Owner range.

It said at less than 3% of new business it does not believe interest-only to be commercially viable to keep this option available.

Alan Cleary, managing director of Precise Mortgages, said: “Whilst interest only mortgage loans are suitable for some borrowers it is not our target market and the low take up of this option confirms that.”