The number of deals for borrowers with small deposits has reached its highest level for 17 years, research by Moneyfacts has found.

The availability of deals at 90% and 95% loan-to-value is at a peak not seen since March 2008.

In the 95% loan-to-value, the number of deals has now reached 442, while in the 90% tier there are now 845 products.

This compares to 575 deals at 95% LTV and 957 deals at 90% LTV in March 2008, which is the last time borrowers had a wider choice of high LTV products.

Moneyfacts finance expert Rachel Springall says: “The flourishing choice of low deposit mortgages will no doubt be welcomed by borrowers who are either looking to remortgage or are a first-time buyer. 

“The Government has been clear that it wants lenders to do more to boost UK growth, and so a rise in product availability for aspiring homeowners is a healthy step in the right direction. 

“However, there is still much more room for improvement, particularly as the choice of deals at 95% loan-to-value represents just 6% of all deals available to borrowers across fixed and variable mortgages.

“Mortgage affordability for borrowers with small deposits has also improved month-on-month, as there has been a drop in rates. 

“The average two-year fixed mortgage rate for borrowers with a 5% deposit at 5.81% is its lowest point in over two years (5.54% – October 2022).”