Nationwide ends interest-only deals

Press Association
Nationwide branch
Nationwide branch

Fiona Hanson/PA Wire/Press Association Images

Nationwide has become the latest mortgage lender to pull out of the interest-only market, saying it will no longer offer this type of deal from next week.

A spokeswoman for the building society said that interest-only mortgage lending has become a "niche area" and it will stop offering mortgages on this basis from next Thursday. Customers who are currently on an interest-only deal with Nationwide will be unaffected, she added.