The average LTV has fallen from 91% in August 2007 – when the credit crunch began – to 74% today, according to moneyfacts.co.uk. As a result the average deposit required on a £150,000 mortgage has increased from £13,500 to £39,000

Borrowers looking for fixed rate mortgage deals have seen an 83% drop in the number of deals available to those with just a 10% deposit. By comparison, the number of deals for those with a 40% deposit has increased by 2244%

Michelle Slade, Moneyfacts.co.uk spokesperson, said: “A threefold increase in the size of the average deposit is likely to hit first time buyers the hardest. Unless they can get help from the bank of mum and dad