The number of mortgage products offering maximum loan-to-values of 95% has more than doubled over the past year, from just 27 to 61 today, report Moneyfacts.co.uk.
Deals with a maximum LTV of 90% have also increased to 316 today compared to 228 this time last year, an increase of 43%.
Louise Holmes, spokesperson at Moneyfacts.co.uk commented:
“Over the past couple of years we have seen the high LTV mortgage market stage something of a comeback, mainly due to high demand from borrowers with limited deposits.
“The first-time buyer market is often considered to be the life-blood of the housing market and mortgage lenders recognise this. Risk is still a major factor, however, and the majority of mortgages with high LTVs require the financial backing from a third party, such as a guarantor, as well as strict credit checks and lending criteria.
“These latest figures will be good news and a welcome relief to many borrowers who have struggled to find suitable mortgage deals within their financial capabilities.”