Borrowers with small deposits are paying substantially more for mortgages according to latest figures from Defaqto.

The research company found that the best rates are for those looking for a mortgage of less than 75% LTV. Mortgages permitting 90% LTV are significantly more expensive. First time buyers are still being particularly hard hit.

David Black, banking spokesperson at Defaqto said: “Three years ago there was little difference in the interest rates charged whether you had a 10% deposit or a 25% deposit. Since the credit crunch the situation has changed significantly and those seeking a higher loan to value mortgage have to pay significantly more.”””