The change is effective across both its direct and intermediary brands from tomorrow.
A spokeswoman for Coventry says: “Following moves by a number of other lenders to restrict their criteria for interest-only lending the Coventry has also reduced the maximum LTV to 50% where any aspect of the loan is interest-only.
“This will apply to residential, offset and further advance applications to ensure that our lending policy remains in line with the market. Our buy-to-let lending policy remains unchanged.”
The move follows an announcement by Nationwide yesterday that it is cutting its interest-only LTV from 75% to 50%.