A return to the 90 per cent loan-to-value (LTV) deposit will help first-time buyers, who until recently were largely ignored by the mortgage market.

First-time buyers of new-build houses can now access mortgages of up to 90 per cent with Santander.

The lender has increased its maximum LTV for this demographic from 80 to 90 per cent and so halved the deposit first-time buyers will need to save.

Paula John, editor of Your Mortgage, said: "It's nothing like a return to the good old days when there were more than 1,000 95 per cent LTV deals, but competition is coming back slowly."

Gross mortgage lending typically declines in the period between December and January but this year there was a substantial 32 per cent fall, according to the Council of Mortgage Lenders.

This reveals that activity in the housing sector was boosted in December by the number of borrowers trying to complete their purchase and capitalise on the stamp duty holiday.

People who are interested in moving house may want to consider using self storage facilities.

Written by Emily Sanders