Mortgage’s for those with a small deposit has increased by over 50% during the past year.
Now there are just over 1,000 different mortgages on the market for people with 20pc or less to put down, up from only 523 in December last year, according to Moneyfacts.co.uk today.
Biggest jump - has been in deals for people with a 20pc deposit, with these soaring by 151pc to 384 during the past year.
The number of different products for borrowers with just a 10pc deposit has jumped from 116 to 204.
The average cost of a loan for someone borrowing 90pc of their home's value is now 6.09pc, down from 6.41pc a year ago, but still significantly higher than the average interest rate charged on a two-year tracker for all loan to value ratios (LTVs) of 3.48pc.
The interest charged on mortgages for people with a 15pc deposit has seen a bigger drop, falling from an average of 6.40pc to 5.09pc during the past 12 months, while loans for people with a 20pc deposit now typically charge 4.63pc, down from 5.58pc, although these are still well up on the rates paid by people with bigger equity stakes.
Today’s typical first-time buyer is still finding an average deposit of 24pc, broadly unchanged from a year ago, according to the Council of Mortgage Lenders.
A spokesman from Moneyfacts said: "Borrowers with smaller deposits are seeing signs of improvement, but the rates on offer to borrowers with just a 10pc deposit remain high”.
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