Its analysis showed that the average interest rate of 90% LTV fixed rate mortgages has fallen by 0.53% in the last 12 months to 5.87% in July, down 0.17% compared to June.
However, the average interest rate of a 90% LTV tracker mortgage has increased compared to July 2010, at 5.5%, but this is down 0.22% on June.
Moneysupermarket.com highlighted that the last time that there were more than 300 90% LTV deals was November 2008, when base rate was 4.5% and impact of the credit crunch had started to be felt.
Clare Francis, mortgage spokesperson at moneysupermarket.com, said the increase in 90% and 95% LTV mortgages was encouraging, given the lack of first-time buyers.
She added: “We are still a long way off the number of products that were available pre-credit crunch and those with smaller deposits still have to pay a higher rate of interest than those who are able to put down 25% or 30%.
“It’s good to see things are moving in the right direction though, as this should make it slightly easier for people to take that first step onto the property ladder.”
Jonathan Cornell, communications director of First Action Finance, said: “The absolute number of products is fairly meaningless. The key thing is how many lenders are offering them, which has increased and that has driven rates down. But there’s only a certain level that rates will drop to, as lenders price for risk.
“It’s hard to know how many 90% LTV applications are accepted – lenders are pretty cagey about numbers. But you would expect a fairly low amount, because lenders are going to be incredibly careful who they will accept given they have to put a lot of capital aside.”
