The CML said this increase in LTV is evidence that the government’s Help to Buy scheme, which allows borrowers to put down as little as 5% deposit, is impacting lending conditions for first-time buyers.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said that despite a slight rise in LTVs for first-time they still remained “modest”.

“While more lenders are offering high LTV products at more competitive rates the average LTV for first-time buyers was a modest 82 per cent in January,” he said.

“This suggests that buyers are saving hard to take advantage of cheaper mortgage rates or getting help from the bank of mum and dad.

“It doesn’t suggest that borrowers are over-extending themselves and taking on more borrowing than they can afford.”

Income multiples increased year-on-year highlighting first-time buyers are putting in less of their own money to get onto the property ladder.

In January this year first-time buyers borrowed 3.39 times their gross income compared to 3.23 times in January 2013.

But as interest rates remained low the amount of income used by first-time buyers to cover capital and interest payments fell from 19.8% in January last year to 19.3% this year.