Principality slashes product range

Principality Building Society is restricting its interest-only offering to just three products.

The Welsh lender is still offering interest-only or part interest-only deals up to 85% LTV. Its 85% LTV deal is available on a three-year discount rate of 0.3% below the SVR, which is currently 4.99%. The deal has a £999 product fee and £150 discharge fee.

It also offers three-year 75% LTV and 50% LTV deals at 0.5% and 1.4% below the SVR respectively. All deals allow early repayments of up to 3% until the end of May 2015.

Interest-only was previously available on a wider range of products including fixed rates.

A spokeswoman for Principality says that as other lenders have withdrawn from interest-only it has decided to restrict it to manage volumes.

She says: “Recognising that some borrowers may need a higher LTV we have not restricted this, but have ensured that varying degrees of LTV are still available for these borrowers.”