The next three months could see a slight drop in the availability of high loan-to-value mortgage deals, according to the Bank of England.

In others words, those with a small deposit of up to 10% of the property’s value could find it becomes a bit more difficult to get a competitive deal.

And these buyers are very often first-time buyers looking to make their first step on the property ladder.

Lenders said they expect a slight reduction in mortgage availability in the next three months, for borrowers with a deposit of 10% or less, and even those with under 25% upfront could be affected.

Risk averse

Lenders also reported having a changing appetite for risk, and this has already led to a decrease in availability of unsecured credit.

However, mortgage default rates fell significantly in the last three months and lenders predict they will fall further.

They added that there was no change in demand for mortgages, although the balance of products had shifted, with a rise in prime business and a drop in demand for buy-to-let deals.