irst-time buyers have been given a boost after the combined choice of higher loan-to-value (LTV) mortgages (90% and 95% LTV) increased to its highest count in 17 years,
Data from Moneyfacts shows September has started with 1,360 options when it comets low deposit mortgages.
This is the highest since March 2008, when the figure was at 1,532.
The availability of deals at the 95% LTV tier rose to 464, now at its highest point in 17 years.
The number of deals at 90% LTV has hit 896, also at its highest point in 17 years.
Product choice overall across all LTVs has increased to 7,062 options, its highest count since October 2007.
Average mortgage rates on overall two- and five-year fixed rate deals have also fallen to 4.96% and 5%, respectively.
Rachel Springall, finance expert at Moneyfacts, said: “Borrowers with a limited deposit or equity of just 5% or 10% will find the choice of higher loan-to-value (LTV) deals has risen to its highest point in 17 years.
“However, it is worth noting these deals represent just 19% of the market overall, up slightly from 17% a year ago, while product choice as a whole for residential mortgages has expanded to its highest count since October 2007.
“The Government has been adamant that they want lenders to do more to boost UK growth, so a rise in mortgage choice is positive. However, it may be a bit too soon to celebrate, as affordability remains a critical hurdle for buyers, and those who want to secure their repayments for the next five years will find higher LTVs are only dropping by miniscule margins.”
She warned that lenders can adopt a more cautious approach to pricing their mortgages when swap rates rise, leading to small margins of moves, but deals can still be reviewed.