The Welsh lender is still offering interest-only or part interest-only deals up to 85% LTV, where it lent across its range before.
Its 85% LTV deal is available on a three-year discount rate, with a discount of 0.3% from its SVR, currently 4.99%.
The lender will continue to offer 75% and 50% LTV deals available at a three-year 0.5% and 1.4% SVR discount respectively.
A Principality spokesperson said: “Many lenders have either chosen to withdraw from the interest-only market or reduce their maximum LTV from 75% to 50%. We recognise that some borrowers still need access to higher LTV products in this space and therefore we have maintained our maximum loan to value for interest-only at 75%, to offer borrowers flexibility in this market.”