Mortgage availability in the UK is on the rise for some, and not for others. There is a unique trend developing in housing mortgage availability. Recent data has demonstrated, those future homeowners providing a 20 per cent down payment has risen, while availability for those which have offered 40 per cent has dropped. This trend is illogical in that, home buyers providing more should have more opportunities to buy and not the opposite effect. Also, in recent months the best rates have been offered to those able to pay the largest down payments. But not now.

Although the lower down payment loan products are being offered, there are very few buyers taking advantage of them. With the cuts in the public sector surely to have an impact on housing, many are playing the wait and see game. This, even though interest rates remain close to nothing, relatively speaking.

Moneyfacts, the financial information service, says the number of loan products out there for borrowers providing 10 per cent down remains small. This has removed many potential first time buyers from the equation, even though many seek to put a foot on the property ladder.

Darren Cook, of Moneyfacts, commented on the risks banks take, saying: "When banks increase the level that they are willing to lend against the value of a property, this usually means that risk increases and rates go up.

"But we are seeing average mortgage rates continue with their slow decline and this could indicate that lenders are getting to grips with the threats of a new mortgage environment.

"Unfortunately this is still not filtering through to increase the number of mortgages approved and the market remains stagnant."