But these mortgages are often not accessible for those in the South and South East, where first-time-buyers must produce a larger deposit because high property prices prevent them from using larger mortgages.
First-time-buyers in London had an average mortgage size of 77pc, compared to 82pc in the North West and 84.5pc in Yorkshire.
Even so, first-time-buyers are still taking on more debt in more expensive areas.
Credit agency Moody’s also said that Londoners borrowed more relative to their income. Around 70pc of first-time buyers borrowed more than 3.5 times their income, compared to 54pc of veteran buyers.
Charlotte Nelson, finance expert at Moneyfacts, said the growth of 95pc mortgages meant customers might now be able to find better deals outside the scheme.
She said: “With the initiative set to end soon, borrowers who are contemplating a Help to Buy mortgage should perhaps cast their net wider and search the whole of the market.
“Lenders outside of the scheme are now actively competing in this key area, so there could be better deals found elsewhere.
“For instance, the best five-year fixed rate mortgage at 95pc LTV from the Help to Buy scheme is priced at 4.48pc today, but the best rate available overall stands at 3.79pc.”
While the mortgage guarantee scheme is due to end this year, the equity loan scheme, also known as Help to Buy One, which launched in April 2013, is set to continue until 2020.
Experts said that high loan-to-value mortgages could become cheaper, as lenders moved to outbid each other for first-time-buyer business.
Andrew Montlake, of broker Coreco, said: “Lenders do need to continue to address this area because buyers just can’t get the deposit together that they need for a smaller mortgage.
“I do think lenders will still be able to offer those products, and the 90pc and 95pc mortgages will become the next battleground as rates for 60pc mortgages have hit rock bottom. There’s still room for those higher value mortgages to drop further.”
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