From tomorrow the lender will only offer residential mortgages on a capital repayment basis through its intermediary brand, but its direct arm remains unaffected.
NatWest says it plans to reintroduce interest-only options on some products from next week.
A spokesman for NatWest Intermediary Solutions says: “From Friday 23 March, residential mortgages in the NatWest Intermediary Solutions core, corporate and AR exclusive ranges will be available on a capital repayment basis only.
“This will be a temporary measure as we expect to reintroduce an interest-only option on selected mortgages next week. Our buy-to-let lending policy remains unchanged.
“This decision reflects the rapidly changing market conditions. It is important to note that our full range of mortgages is still available on a capital repayment basis.”