The number of mortgages available at 85% LTV is at its highest since October 2008 and the number of mortgages available at 90% LTV is at its highest since December 2008, according to moneysupermarket.com.

The average rate of mortgages at 85% and 90% LTV have dropped to their lowest level since the worst of the financial crisis in October 2008. Since September 2009 the average rate of an 85% LTV mortgage has dropped by 0.68% to 5.54% and the average rate of a 90% LTV mortgage has dropped 0.33% to 5.98% – the first time this rate has dropped below 6% since the start of the credit crunch.

Hannah – Mercedes Skenfield, mortgages channel manager at moneysupermarket.com, said: “These are positive signs for people who can only muster a small deposit