The latest data from Moneyfacts.co.uk has revealed the 85% LTV market is now benefiting from 396 products as lenders slowly returned in November to the high LTV arena.

Overall product availability has also increased for the second consecutive month, according to Moneyfacts’ experts, who revealed there were now 2,782 deals – a jump of 378 since November.

It’s the largest monthly increase in product choice the financial product analysts have seen since November 2014.

But while product choice is greater, the interest rates on some of these deals appear to be increasing as Moneyfacts revealed the average two year fixed rate for all LTVs has risen 0.06% over the month to 2.49%. It’s the fifth consecutive month this type of mortgage has experienced rate hikes.

Five-year fixed-rate deals, however, reduced by a very small 0.01% and now remain lower by 0.05% than in December 2019.

Eleanor Williams, finance expert at Moneyfacts, said while, at 2,782, there were still 44% fewer products on offer than at the same time last year, this it was an improvement on the 53% year-on-year market contraction seen last month.

“This growth may be a reflection of lenders reacting to not only the level of pent-up demand from those looking to move following the first lockdown,” she added, “but also the flood of would-be borrowers hoping to complete their new mortgage in time to benefit from the temporary stamp duty land tax holiday.”

Moneyfacts’ data shows 22% of the new mortgages released in the last month were in 85% and 90% LTV tiers with providers such as TSB, Yorkshire Building Society and Accord returning to this space.

The 95% LTV market, however, has actually decreased in size in the last month from 12 to eight deals.

Williams added: “Improvements in availability are likely to be well received, particularly by those borrowers with the smallest deposits who may have been concerned that with low savings rates and increasing house prices, their homeownership dreams would have had to be shelved.”