More mortgages available with lower deposits

Research by moneysupermarket.com found that the number of products on the market for people wanting to buy their first home is going up.

The number of 85 per cent loan-to-value LTV options has risen by 22 per cent since December, with 90 per cent LTVs up by 11 per cent in the same timeframe.

Falling rates may make it even easier for buyers, as the average rate of 80 per cent LTV mortgages is now 4.97 per cent, which is 0.77 per cent lower than it was last October.

Hannah-Mercedes Skenfield, mortgages channel manager at moneysupermarket.com, said: "Although there are only nine products available at 95 per cent LTV, the average rate has fallen by 0.71 per cent since October."

For those who already have a mortgage, the price comparison site approved of plans by the Financial Services Authority to help borrowers in financial hardship.