The Cambridge Building Society has launched two interest-only mortgages – a fix and a discount – with these loans available for up to 40 years.

The discount product runs for two years and provides an initial rate of 3.74% while the fix is five years long and comes in at 5.34%.

The minimum loan size is £75,000 and the maximum loan size £750,000.

The Cambridge says it will accept repayment methods for up to 70% LTV and that 66% LTV of the secured property needs to amount to £225,000 worth of equity.

There is no minimum income requirement.

Intermediary manager Kathy Bowes says: “We have launched these additional products to broaden the range and provide greater flexibility to a wider range of applicants, in line with our strategy to provide appropriate access to homes and housing.

“Mortgage affordability is assessed on an interest-only basis and our team of expert underwriters look at each application individually, which enables us to make sound lending decisions.”