A note went out confirming the move last night. It said existing customers can still continue as normal with their mortgage. Any further borrowing by them however, will only be available on a capital and interest basis.

All pipeline applications will be processed as normal.

The society said: “As you will be aware, there has been a general downward movement in the market place in the level of interest-only borrowing allowed by lenders, with many already having withdrawn from the market.

“Our move is a reflection of this to ensure we are not out of line with the rest of the sector.”