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Analysis by Moneysupermarket have revealed more products are now available to mortgage borrowers with lower deposits.

Mortgage Deals with an 85% loan to value (LTV) have seen the biggest rise in availability since December last year - an increase of nearly 22%, meaning there are now over 380 products available to those with a 15% deposit.

Those with only a 10% deposit are also in luck as the figures show there has been an increase of nearly 11% since December 09 with 165 products now available on the mortgage market.

Rates across mortgage products have begun to decrease down since October 2009. Rates for 80% LTVs have fallen hardest, with the average rate now sitting at 4.97%, 0.77% lower than in October 2009.

Mortgage Lenders seem to have started 2010 with their doors open and are clearly more open to mortgage lending than they have been for some time. The increase in products available at 85% ltv  and 90% ltv is particularly encouraging for first-time buyers, as scraping together a large deposit is not easy, and is the reason many prospective first-time buyers deserted the market in their droves over the last 2 years. 

While rates are obviously lower for those with a higher deposit, it is encouraging to see rates starting to drop across all LTV mortgage products. Although there are only nine products available at 95% LTV, the average rate has fallen by 0.71% since October 2009.

It is not all good news though as last week’s announcement by The Skipton Building Society increasing their standard variable rate (SVR) indicates we might see an increase in rates elsewhere in the mortgage market. This coupled with the sharp increase in inflation could lead to a reversal in this trend.