The Royal Bank of Scotland (RBS) and NatWest will begin offering interest-only mortgages to its wealthiest customers again later this month, the banks announced this week.

Loans will be made available from 21 September 2015 to customers earning more than £100,000 a year, excluding discretionary bonuses, with a maximum loan-to-value of 75 per cent.

RBS and NatWest have not offered interest-only mortgages since December 2012.

The products were scrapped by a number of banks in the wake of the financial crash of 2008.

Lloyd Cochrane, head of mortgages and protection for RBS and NatWest, said: “Interest-only mortgages will give our customers more choice and provide additional flexibility in how they repay their mortgage.

“We are re-entering this market due to customer demand and we will keep in touch with our customers to support them to stay on track with repaying their mortgage.”

Graham Felstead, head of Natwest Intermediary Solutions, added: “The mortgage market is currently a very dynamic one which is set to continue on its growth path.

“We have enjoyed great support from the broker market this year and look forward to continuing to help more and more customers with their borrowing needs for the rest of 2015 and beyond.”