Mortgage broker, mform.co.uk, report that interest rates remain low but some lenders are increasing their fees decreasing the chance of cheap mortgage deals.

Additionally the number of lenders offering 100 per cent mortgages has decreased from 22 to nine. Borrowers have a choice of 39 mortgages but six months ago that figure was 162.

Francis Ghiloni, of mform, said: “The 100 per cent mortgages isn't dead yet but borrowers who don't have deposits now have significantly less choice and are having to pay more.

“ Lenders have given up on 125 percent mortgages but there is still life in the 100 per cent mortgage market albeit with higher rates and fees as companies price for risk.”

Mortgages for 100% are currently offered by: Abbey, Manchester, Scottish Widows Bank, Bristol and West, NatWest, Royal Bank of Scotland, Stroud and Swindon, Ipswich and Tipton and Coseley.