A financial service information website claims that mortgage availability for homebuyers has improved over the past month, BBC News reports.

According to moneyfacts.co.uk, at the beginning of March there were 1,798 mortgage deals available which required deposits of between zero and 40 per cent, which represents a six per cent rise in availability compared to the previous month.

In addition, there are now 489 mortgage deals that ask for ten per cent or 15 per cent down-payments, which is a 90 per cent increase from a year ago.

Michelle Slade of moneyfacts.co.uk explained that mortgage providers are becoming a little more accommodating with their credit criteria, adding that increased competition is positive news for consumers.

She said: It is pleasing to see that the average mortgage rate is falling at the same time as deposit requirements are getting smaller.

Meanwhile, a recent survey conducted by Post Office Mortgages found that at least three million UK borrowers do not know the rate of interest at which they are currently repaying their mortgage.