Mortgage lenders may be starting to relax, which could be good news for consumers seeking a mortgage loan.

The head of mortgages at Bestinvest, Peter O’Donovan, was reported as saying the lender confidence is starting to slowly return.

"Northern Rock is the latest lender to relax their best loan-to-value rate at 70 per cent from 60 per cent. It all does suggest that there is relaxation going on," He commented.

However, Mr O'Donovan added that it is unlikely a full recovery will be seen until a lender offers a loan-to-value rate of between 85 and 90 per cent.

His comments follow a report published earlier this week by the Council of Mortgage Lenders (CML), which revealed that home loan approvals in August were up 29 per cent compared to the same period in 2008.

According to the CML, 52,700 home loans were approved during August. However, figures show that remortages have dropped by 57 per cent over the last year.

Those planning to move house over the coming months could make the transition smoother by putting some of their goods into storage.