The mortgage market continues to mix good news with bad at the moment as demonstrated by the latest figures from the moneyfacts website. The number of deals available to would be house buyers has increased by a large 66% so far this year but most of those still require a 25% deposit. Only 8% of available mortgage deals require a 10% deposit.

There are a mere four deals on general offer with a deposit as low as 5%.

This does represent some improvement as previously many mortgage deals required a 40% deposit, effectively preventing most first time buyers from entering the market.

Although there has been little change this year in the proportion of mortgage deals requiring smaller deposits, the average interest rate being charged on them has drifted down.

The average two-year fixed rate deal now comes with an interest rate of 4.5% compared to 4.9% in January. Three-year fixed rates now cost on average 5.2% instead of 5.5% at the start of the year, and five-year deals now cost 5.6% instead of the 6.1% charged in January.

However these figures disguise the very wide difference in the interest being charged according to the size of the deposit being put down.

A two-year fixed deal with just a 10% deposit comes with an interest charge of 6.2%, but a 25% deposit brings that down to 4.1% while a 40% deposit attracts an interest charge of just 4%.

Statistics released recently by the Council of Mortgage Lenders (CML) show that the average first-time buyer currently has to put down a deposit of £35,000 to buy a home.

Deals from the big banks with 10% deposits are often very expensive. RBS have one of the worst rates available for first-time buyers with a 10% deposit which is 6.89% fixed for five years. Analysts say that you would have to be truly desperate to take this rate.

These latest figures do mix good news with bad, however, there is real encouragement here for first time buyers and others required to put up a large deposit. These people are seeing real improvements in the number of mortgages available and smaller deposits required.

For the many people still struggling to get onto the property ladder these small improvements may be little comfort. However, more and more people are now able to take their first steps onto the housing market with further improvements expected over the coming months.