The Coventry Building Society will no longer offer interest-only residential mortgages for new lending from 3 December.

Buy-to-let interest-only mortgages will continue to be offered.

Colin Franklin, sales and marketing director, Coventry Building Society, said: “Residential interest-only mortgages have declined to less than 2% of all residential mortgage applications. We have therefore decided the time is right to leave this market.”

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 before.