There are 464 deals at 95% LTV and 896 deals at 90% LTV, meaning a combined total of 1,360 product options for borrowers with a deposit of 10% or under.

This marks an increase of 24% from a combined total of 1,095 90% and 95% LTV deals a year ago.

It is the highest total since March 2008, when there were 1,532.

Products for borrowers with a deposit of 10% or less now represent 19% of the total number of deals on the market.

Average two-year fixed rates fell by 5 basis points to 4.96% and average five-year rates by 1 bp to 5% over the past month.

Compared to last September, the two-year average is 60 bps lower, down from 5.56% and the five-year average is 20 bps lower, down from 5.2%.

The total number of products on the market is at its highest level since October 2007 at 7,062, with 220 products added over the past month alone.

The average standard variable rate fell to 7.32% in September from 7.42% in August.

By comparison, the highest recorded SVR was 8.19% in November and December 2023.

Moneyfactscompare.co.uk finance expert Rachel Springal says: “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. 

“Indeed, the average 95% and 90% LTV five-year fixed rates fell by just 2 bps and 1 bp month-on-month.

“The margin of falls to the overall average fixed mortgage rates shrunk month-on-month, no doubt due to the unsteadiness of swap rates.”

She adds: “As we have seen countless times, 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. 

“During August, the average shelf-life of a deal was unchanged month-on-month at 17 days, so the churn of products did not calm.”