Prospective first-time homeowners and borrowers with smaller deposits have far less choice compared to a year ago, according to Moneysupermarket.
Analysis by the website found the number of 90 per cent mortgages has fallen by 26 per cent from 330 products this time last year to the 244.
Meanwhile, the number of 95 per cent mortgages has fallen by 43 per cent from 49 products to just 28 and there has also been a drop in products specifically for first-time-buyers, which have fallen 31 per cent from 1,786 to 1,225.
A number of lenders that were offering 95 per cent mortgages six months ago have since withdrawn them from the market. These include Cambridge, Ipswich, and Skipton Building Societies.
Moneysupermarket mortgage expert Clare Francis said: “Our analysis shows the continuing difficulty facing first time buyers and those with smaller deposits looking to find a suitable mortgage.
“Despite the launch of the Funding for Lending Scheme which was designed to encourage further mortgage lending by the banks, there appears to be few signs that the initiative is helping those with small deposits.
“It is still early days and we won’t see any data on the impact of the initiative until the end of the year, but so far there is little to indicate that the scheme will kick start the beleaguered mortgage market.”
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