High LTV mortgages still expensive

David Black, banking specialist at Defaqto, said: "Three years ago there was little difference in the interest rates charged whether you had a 10% deposit or a 25% deposit. Since the credit crunch the situation has changed significantly and those seeking a higher Loan-to-Value (LTV) mortgage have to pay significantly more."

He added: "The keenest rates are for those seeking a mortgage of less than 75% LTV. Mortgages permitting 90% LTV are significantly more expensive. First time buyers are particularly hard hit as they need a substantial deposit merely to get on the housing ladder and a significantly larger deposit to access the best rates."