The gap between the Bank of England base rate and average mortgage rates grew 1.5 per cent according to the Financial Services Authority (FSA). The FSA also revealed a mere 10 lenders accounted for over 80 per cent of all mortgage business in the last year, to this past March. Additional data showed the percentage of remortgage type business dropped from 60 per cent of all mortgages in 2008-2009 to 38 per cent in 2009-2010.

Loans to first time buyers almost doubled, going from 13 per cent in 2008-2009 to almost 25 per cent 1 year later. Loan to Value lending saw a slight increase over the last year, from 69 per cent to 74 per cent.

The number of self employed borrowers dropped slightly, from 15 per cent in 2008-2009 to 12 per cent in one year. The decrease could be blamed on the new criteria - having to prove income up to three years back.

Also, bad credit borrowers dropped in number, going from 1.53 per cent in ‘09 to 0.42 per cent in 2010.

Matthew Fleming-Duffy, Abacus financial director, commented on the fact that only 8 to 10 lenders are having mortgage business directed toward them, saying: "In terms of intermediary business, it is more like five lenders that are getting most of the business, because there are even fewer best-buy deals that are available through brokers. It is not good for competition."

He added: "I hope that this spread starts to narrow when base rate starts increasing or it will price more borrowers out of the mortgage market. It is right that the number of these mortgages is down on 2007 but for the number to be down on 2009 figures is more concerning as the market was already subdued then.

"The worry is that this will lead to more forced sales as many borrowers will not be able to remortgage."