Principality Building Society is restricting its interest-only offering to just three products.
The Welsh lender is still offering interest-only or part interest-only deals up to 85 per cent LTV.
Its 85 per cent LTV deal is available on a three-year discount rate, with a discount of 0.3 per cent from its SVR, currently 4.99 per cent.
It also has a £999 product fee and £150 discharge fee.
The lender is also offering 75 per cent and 50 per cent LTV deals available at a three-year 0.5 per cent and 1.4 per cent SVR discount respectively.
All deals allow early repayments of up to 3 per cent until the end of May 2015.
Interest-only was previously available at Principality on a wider range of products including fixed rate deals.
It follows moves by a number of lenders to restrict interest-only in different ways from stricter criteria to lowering LTVs.
A spokeswoman for Principality says as other lenders have withdrawn from interest-only they have decide to restrict it to manage volumes.
She says: “Recognising that some borrowers may need a higher LTV we have not restricted this but have ensured that varying degrees of LTV are still available for these borrowers.”