Leeds Building Society has cut the maximum LTV it will lend on interest-only mortgages to 75%.
The lender previously offered interest-only mortgages up to 85% LTV.
It says the latest limit applies irrespective of the repayment vehicle in place.
But Leeds says that it will still accept split mortgages, such as an 85% LTV deal where 75% is an interest-only loan and the remaining 10% is on repayment.
This change came into effect on June 8 2011, but the society has given brokers 21 days to provide any extra documentation needed.
The move by Leeds follows similar restrictions on interest-only mortgages from other lenders, with Halifax lowering its LTV limit on interest-only from 85% to 75% earlier this year.