Competition is said to be returning to the mortgage market after it was revealed lenders have continued to ease their deposit requirements. The latest research from Moneyfacts Group has revealed a significant increase over the last month in the number of mortgage deals available for borrowers with deposits of between 10% and 20%. By the end of November, 116 products were available at 90% loan to value (LTV), compared with 101 a month earlier, while at 85% LTV, 254 deals can now be found, up from 226. Meanwhile, at 80% LTV, the market has expanded by almost a third over the last month, with 153 products now available, up from 117 at the end of October. "Lenders have adjusted to the post banking crisis world and are starting to relax their lending criteria," said Michelle Slade, spokesperson at Moneyfacts Group. "In the last month, we have seen lenders increasing the LTVs up to which their existing deals are available, or launching new deals at higher LTVs. Many house price indices are now showing a rise, meaning that the risk of higher LTV loans has reduced. While the best deals remain for those with a 40% deposit, those with smaller deposits are finally seeing rates starting to come down."

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