According to a new study, the optimum loan-to-value (LTV) ratio is 60%, which will allow potential borrowers to unlock nearly all the options on the market.

LTV is the percentage of the loan asked for relative to the total value of the property. It is one of the most important things looked at by lenders when assessing the risk factor of new borrowers and their likelihood of defaulting during the life of the loan.

The study by Fool found that people who borrow less than 60% of the total value of their homes have 4,620 products available to them as compared to those who have only put in 25%, who have 1/3 less with 3,360.

As expected, the less put in up front by borrowers, the slimmer the chances of being able to get a loan. People who have a deposit of 5% have only 74 products to choose from.

While house prices continued to rise borrowers saw the size of their loans as a percentage of house value drop, but now with the market going the other way, it is no longer possible to rely on this.

David Kuo, head of personal finance at Fool.co.uk, commented that:

"If proof was ever needed that banks like to lend money to people who need it least, then this is it. But you don't have to rely on rising property prices to shrink the loan-to-value. There are other ways, such as increasing monthly mortgage repayments, which will also reduce the size of the loan compared to the value of the property.”