ASN has become the second Dutch bank to restrict interest-only mortgages, following warnings about risks from the central bank and financial services regulators.

In January, the Netherlands’ biggest mortgage lender Rabobank said it will cap the interest-only portion of new mortgages at 30%, down from the current 50%, with an absolute maximum of €150,000 from mid-May.

ASN, which also operates mortgages under the SNS, Regiobank and BLG Wonen labels, said it is partly following Rabobank’s lead by reducing the interest-only share to 30%, but there will be no maximum ceiling.

“A partial interest-only mortgage is appropriate for many clients,” so will remain possible, sales director Angela Eijlander said in a press statement.

Some 45% of Dutch mortgages are interest-only, which means borrowers have to repay the principal at the end of the mortgage period, which is often 30 years.

Most interest-only mortgages are taken out by people who already own a home and are either moving or want to borrow a higher amount to pay for work in their property.