The number of 95% and 90% LTV deals rose to 1,360 options this month

The combined choice of mortgages at 90% and 95% LTV has risen to its highest count in 17 years, according to the latest figures from Moneyfacts.

The number of 95% and 90% LTV deals rose to 1,360 options this month. The availability of deals at the 95% LTV tier rose to 464, while the number of 90% LTV deals rose to 896, both at their highest point in 17 years.

These deals now represent 19% of the residential mortgage market overall.

Product choice overall rose month-on-month, to 7,062 options, its highest count since October 2007.

Average two and five-year fixed rates fell by 0.05% and 0.01% to 4.96% and 5.00%, respectively, lower margins than seen the prior month.

At the start of September 2024, the average five-year fixed rate was 5.20%; compared to the start of this month, the rate is 0.20%. However, the average two-year fixed rate has fallen by 0.60% over the same period, down from 5.56%.

The average two-year tracker variable mortgage rate has fallen to 4.66% and the average SVR is down to 7.32%.

Rachel Springall, finance expert at Moneyfacts, said: Borrowers with a limited deposit or equity of just 5% or 10% will find the choice of higher loan-to-value deals has risen to its highest point in 17 years. However, it is worth noting these deals represent just 19% of the market overall, up slightly from 17% a year ago, while product choice as a whole for residential mortgages has expanded to its highest count since October 2007. The Government has been adamant that they want lenders to do more to boost UK growth, so a rise in mortgage choice is positive.

She added: However, it may be a bit too soon to celebrate, as affordability remains a critical hurdle for buyers, and those who want to secure their repayments for the next five years will find higher LTVs are only dropping by miniscule margins. Indeed, the average 95% and 90% LTV five-year fixed rates fell by just 0.02% and 0.01% month-on-month.