HSBC has committed to lending a further £350 million to borrowers with a loan-to-value (LTV) ratio of at least 85 per cent.

The bank also revealed that £250 million of that total will be lent to first-time buyers between now and the end of the year, as well as unveiling a whole new range of deals for high LTV mortgages with no fees attached.

For customers with a ten per cent deposit (90 per cent LTV), the two-year fixed rate is now 4.49 per cent, with the five-year equivalent at 4.89 per cent.

Borrowers with a 15 per cent deposit can get a two-year fixed rate deal at 4.29 per cent and 4.69 per cent for five years.

Peter Dockar, head of mortgages at HSBC, said: "In 2011 we have continued to offer very competitive rates and great advice to those with a relatively small deposit which has helped us to increase the amount we have lent to first time buyers.

"Today's announcement of fee free rates and a pledge to make a further £250m available to FTBs in 2011 shows HSBC's commitment to continuing to help people get on the housing ladder.'

Analysts believe the number of opportunities for people looking for a high LTV mortgage have increased recently.

"The market has definitely improved with more lenders offering innovative products at high loan-to-values," Ray Boulger of mortgage broker John Charcol told the Financial Times.

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