Coventry reduces interest-only LTV to 50%

Coventry Building Society has cut its maximum LTV for interest-only lending from 75 per cent to 50 per cent.

The change is effective across both its direct and intermediary brands.

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 per cent 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 per cent to 50 per cent.