Barclays is the latest lender to target small deposit borrowers, including a rate of 3.94% and 2.29% for buyers with a deposit of 5% and 10% respectively, fixed for two years, while buyers at 85% LTV can get a rate of 1.98.
The average rate on 95% LTV has also fallen over the past six months from 4.16% to 4.02% - despite the Bank of England base rate rise in November.
Charlotte Nelson, finance expert at Moneyfacts, said: "The 95% LTV market has seen a significant boost to product numbers this month, seeing the number of deals pass the 300 mark to reach a post-crisis high".
The UK Mortgage Trends Treasury Report data revealed 37 new 95% LTV products had been introduced in the last month increasing the number available to 307.
But despite this, the rates had yet to recover from the all-time low they experienced in January 2017. "Within our new offering we're launching two new attractive seven year fixed rate products, catering for the home movers who are opting for longer term fixed rate products". As a result, providers have been able to cut rates, despite other sectors of the mortgage market experiencing an increase.
Barclays has announced that as of tomorrow, those stepping onto the property ladder for the first time can take advantage of new residential products including three new fee free high-LTV fixed rates with £500 cashback.
"With that in mind, borrowers looking for a 5% deposit should not celebrate too much about things starting to look up, for this is an often-neglected section of the market. Instead, the positive news should be seen as a call for action, with future base rate rises on the horizon".