Manchester cuts back on interest-only lending

Manchester Building Society is cutting back on its interest-only lending and says it will now only offer it through selected brokers.

The building society is still offering interest-only lending for buy-to-let but is no longer offering it on its residential range.

Ian Richardson, executive director at the Manchester, says it has experienced an increase in volumes across its entire mortgage range and has been forced to cut back on some of its product offerings.

But he says: “Interest-only will still be available on an ad hoc basis for brokers we have an ongoing business relationship with.”

He says the society also plans to launch a new interest-only range in the coming weeks.

It currently offers up to 60% on interest-only.