It is only available  for remortgaging at a maximum loan-to-value of 60% and requires a minimum equity of £300,000 in London, £250,000 in the South East and £200,000 across the rest of the UK.

Rates on the society’s interest-only products are the same as its capital repayment mortgages and start from 1.29%.

In terms of repayment, this will be restricted to the sale of the main residence only, with part interest-only and part capital repayment mortgage also allowed subject to the same criteria.

Sole applicants will need a minimum income of £75,000 and for joint applicants income must be at least £100,000. The maximum term is 25 years or retirement age if that is sooner.

Henry Jordan, Nationwide’s director of mortgages, said: “As the UK’s second largest lender, it is natural that we continue to look at ways we can support the mortgage market.

“At almost 7%, interest-only remains an important part of the market, which is why we are launching this new product, initially via brokers.

“During these unprecedented times, it is important to continue offering a variety of options and flexibility to homeowners and, by adding interest-only, we are providing access to our standard product range to applicants with good equity.”

Martin Stewart, director at London Money, commented: “I think this is a great initiative from Nationwide and brings them in line with the other major high street lenders in the UK.

“The interest-only market has evolved a lot over the past 10 years and, in doing so, we are now focusing on the opportunities where interest-only is a viable alternative for the borrower.

“I know Nationwide, as a responsible lender, has spent a lot of time on its due diligence to make sure its offering is the right one. I believe that it is, and this new initiative should see them begin to challenge their competitors in what is a very active part of the market.”

Greg Cunnington, director of lender relationships and new homes at Alexander Hall, said: “It is really positive to see Nationwide returning to the interest-only market especially when clients, now more than ever, need the widest range of available options.

“Interest-only mortgages are a core part of the holistic advice discussion for intermediaries and, I’m sure I speak for many of them when I say, I’m delighted to see Nationwide showing their support in this way.”