Average remortgage LTVs rose to 59.2% – the highest proportion since October 2011. Meanwhile, average rates for two-year fixed-rate products dropped to their lowest for over a year at 4.26% in January.

Mortgage Advice Bureau head of lending Brian Murphy said lenders were showing more appetite for risk: “The best deals are available at low LTVs, but as that space becomes increasingly crowded, lenders are open to offering better rates in return for less up-front investment.

“There has been little to get excited about around remortgages until recently, and just 12 months ago you would struggle to find a deal lower than 5%. Now they are closer to 4% and people looking to remortgage will be pretty pleased with the options open to them.”

Average rates for two and five-year fixed-rate products could dip below 4% by April, he predicted.

Despite opportunities for better deals, the MAB figures found the average deposit was larger in January compared to the previous year.

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In the UK, the average purchase deposit was £62,461, or 11% higher than in January 2012. However, the average deposit in London was over double the UK average at £143,574 and 12% higher than twelve months previously.