Dudley Building Society has increased its maximum loan-to-value from 75 per cent back up to 80 per cent LTV and relaunched an interest-only product.

It comes after the mutual began a phased return to lending in August.

The lender has launched an interest-only deal which is a discount variable rate for term, priced at the standard variable rate minus 1.05 per cent, giving a current pay rate of 3.94 per cent.

It has a maximum LTV of 75 per cent and a 1 per cent arrangement fee.

Rates for products in the new 80 per cent LTV tier start from 3.79 per cent for a two-year fixed with a £999 fee.

Dudley commercial director Sam Ward says: “Having launched a series of new and exciting products in specialist niches such as shared ownership, right to buy, self-build and holiday let funding, the Society feels the time is right to look again at the core residential mortgage proposition. 

“To that end, we have taken the next step by improving residential LTVs and reintroducing an interest only repayment option via a new discounted product.” 

Ward adds: “We are tuning our criteria in a way that increases our caseload in proportion to our ability to process, thus maintaining our reputation for not only meeting the expectation of our customers for competitive funding solutions, but also providing a fast reliable service to our introducer partners.”