Those who need to borrow up to 90% of the property’s value – usually first-time buyers or second steppers – have more choice than ever before, according to financial information site, Moneyfacts.

There are 275 deals on the market right now for those with 10% upfront, compared to just 101 five years ago.

There has also been a massive drop in interest rates on 90% loan-to-value mortgages since 2012, which now average 2.63% compared to 5.47% five years ago.

Charlotte Nelson, finance expert at Moneyfacts, said: “This is great news for borrowers with small deposits who have felt almost ignored by the market, as not only have rates at 90% LTV fallen to an all-time low, but the number of two-year fixed rate mortgages available has seen a 29% increase in just one year.

“With lending at higher LTVs now more the norm, the 90% tier has become a key target for lenders that are looking for a new avenue in which to compete and stand out from the crowd, as other parts of the market start to become saturated.

Sponsored

How life insurance can benefit your health and wellbeing over the decades

Sponsored by Post Office

“The 90% LTV bracket is often considered for first-time buyers, but many borrowers who took out a 95% LTV deal a few years ago could now be starting to weigh up their options for remortgaging into this section of the market. Providers that don’t want to lose a chunk of their mortgage book therefore have to up their game by not only offering better choice but also lower rates.”