Moneyfacts analyst Darren Cook said: "Banks are far from predicting the end of the housing slump and are hedging their bets by increasing the number of their best mortgages to those who are fortunate to have a 40% deposit.
"The average mortgage rate for a 60% loan to value mortgage is currently 4.29%, compared to 5.92% six months ago and the availability within this tier has increased from 184 products to 297 today. If you have only a 10% deposit, you will be paying an average rate of 5.98% and a choice of only 71 products.
"The spread in pricing between the haves and the have-nots has doubled during the past six months as the fear of negative equity and the inability to pay continues to grow. Since November last year, a mortgage with a 40% deposit is 1.63% down, but a 10% deposit has only become 0.74% cheaper.
"With the Bank of England base rate unlikely to fall bellow its current level and expectations are that we should see this rate unchanged for the remainder of 2009, we will only see better mortgage rates across the board if banks regain their appetite for responsible lending and healthy competition for new business returns to the market."
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