Current mortgage lenders will not see any new entrants vie for more competitive positions in the market, suggested one expert.

Andy Pratt, chief operating officer at Alexander Hall, stated that confidence has returned to the lending community and added that rates are low due to the range of competition.

He thought that first-time buyers could be more hopeful about their prospects as well, once the housing sector begins to stabilise.

Speaking about these new opportunities, Mr Pratt said: "It is good news [but] counterbalancing that is the fact that the required deposit to get the decent rate is higher than it was a couple of years ago."

The Bank of England recently found that total net lending rose by £2 billion in January, even though the number of loan approvals for house purchases was almost 10,000 lower than December's figures.

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Written by Emily Sanders