There are more mortgages available for buyers with 5% deposit than in the last five years, new data has revealed.

Mortgages for these types of loans, which are most commonly used by first-time buyers, have been thin on the ground in the last few years.

But research by Moneyfacts has revealed more and more mortgages which provide a loan for 95% of a property’s value (known as 95% loan-to-value deals) have been slowly entering the market with numbers now reaching 388.

It comes amid plans by the government and financial regulator to loosen mortgage rules to help more first-time buyers get onto the property ladder.

Rachel Springall, finance expert at Moneyfacts, said it was positive to see a growth in choice for borrowers but there was room for more deals to pushed out into this area of the market, which represents just 6% of mortgage products as a whole.

What’s more the rates are not as attractive today as they were last month. Springall said: “Despite rising choice, average rates across a two- or five-year fixed deal at 95% loan-to-value are higher than at the start of 2025.”

She added: “Lenders have been urged to do more to support first-time buyers, to boost growth in the economy, thus the debate on the loosening of lending rules.

“Therefore, there is an expectation for more products and innovation to emerge this year. However, the current rules will continue to pose a challenge for lenders to do more, as has been the case for the past 10 years where regulatory recommendations stipulate loan-to-income ratios of 4.5 or more do not exceed 15% of a lender’s new lending.

“Until lenders see a relaxation to these rules, some will have no choice but to pose limitations on those borrowing at higher loan-to-value tiers. Regardless of whether these rules change or not, there will be borrowers hoping to finish up their purchase before the stamp duty deadline at the end of March 2025.”