The availability of mortgages is increasing in the UK, which is a good sign for first-time homebuyers.
The number of home loan deals offered on the UK market jumped 20 percent last month, with some deals requiring a small deposit of 10%, according to figures released by financial information service Moneyfacts.
The impact of the credit crunch was felt especially by first time homebuyers, who needed huge savings to get into the property ladder.
Mortgage lenders have loosened their requirements since October, when 66 percent of the deals only required at least 25 percent down payment deposit. This figure was dropped to 61 percent in January and declined further to 58 percent at the start of February.
The recent increase in property prices has greatly affected the availability of mortgages, making the deals less risky for lenders.
The 1,700 home deals on the market are the highest since November 2008, and some suggest that there is more competition in the mortgage market.
This new trend will continue if mortgage lenders start raising their variable rate cost and promote certain mortgages to those who might be considering remortgaging.
“Better rates and an increase in appetite to lend could indicate that lenders are opening their doors just a little wider and trying to compete for business," said Darren Cook of Moneyfacts.
"If standard variable rates continue to rise, many customers will be forced to find a better deal elsewhere and lenders may now be wise and gearing towards the prospect."
Ray Boulger of mortgage broker John Charcol also said: "It is a continuation of the trend we have seen for the last three or four months, none of the cuts have been massive, with lenders cutting a few selected rates rather than all of their rates.”
"The reason for the trend is due to a bit more competition in the market. We will see a bit more activity in the market this year,” he added.