Fixed-rate deals fall away and borrowers have to find 25 per cent deposits

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Banks and building societies have withdrawn a third of all fixed-rate mortgage products and are demanding an average deposit of 24 per cent of the value of the property, according to the price- comparison website

There were around 1,410 fixed-rate products to choose from in February 2008 but now there are just 935 – a 33 per cent cut.

And MoneyExpert analysis shows the average loan-to-value across the market is 76 per cent, against 89 per cent this time last year when there were 407 products available for borrowers with deposits of 5 per cent or less.

Currently there are just 17 fixed deals available with a deposit below 10 per cent.

Sean Gardner, director of MoneyExpert, said: “Even though house prices have fallen, many would-be borrowers are no nearer to qualifying for a loan. There are excellent-value mortgage rates out there, but only for borrowers with large deposits.

“First-time buyers and people who have recently bought a property won’t be able to access those deals. But they should at least be able to have a decent selection of products to choose from. Lenders are lending again, which is a start.”

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