Figures compiled by Moneyfacts has revealed that since the Bank of England (BoE) base rate was cut to 0.5% in March 2009, the number of mortgage products which have a loan-to-value (LTV) of 85% has risen from 169 to 231, an increase of +27%.

The minimum deposit required had increased to 40% for some home loans after the subprime mortgage meltdown however lenders have started to lift their restrictions.

Darren Cook, Moneyfacts’s spokesperson, said: “It is encouraging to see that lenders are becoming more accommodating with their deposit requirements. This is likely to give more opportunities to first time buyers.

“Lenders seem to be getting a bit more comfortable now that property values are levelling out and are prepared to advance to a higher level. However, rates are relatively higher for mortgages with small deposits.”