Homeowners or potential buyers with small deposits for a mortgage may struggle as only a small number of mortgages are available, recent figures have shown.

According to figures from Moneyfacts, only 45 mortgage deals are currently available in comparison to 249 last month.

Figures also stated that there has been a 65 per cent fall in the number of available mortgage deals in the past year.

Moneyfacts believes that the withdrawal of tracker mortgages following the base rate cut has led to the decline in the amount of mortgages available.

Spokesperson Michelle Slade said: "With base rate falling to such a low level, many lenders are choosing to severely restrict the number of trackers they offer or not offer them at all."

Last week’s base rate cut led Abbey to temporarily withdraw its tracker rate mortgage in order to "to prevent excessive in-flows and the impact on service levels this would have."

Meanwhile, Chancellor Alistair Darling is planning to urge banks to lend again by proposing to extend government guarantees to mortgages.

He said: "We will be announcing in the near future measures which I hope will not only strengthen the banking system but I hope will ensure greater lending to businesses and people."