The online mortgage company has found that the number of first-time buyer mortgages available has fallen by 80% in the past year.
At the end of August it says there were 230 discounted and variable mortgage rates available direct to borrowers, compared to 583 first-time buyer mortgages being offered at the same time last year.
Lenders who remain in the 95% LTV market include Principality, Abbey and Halifax.
Francis Ghiloni, marketing and business development director at mform.co.uk, says: “First-time buyers should be benefiting as house prices fall but unfortunately they are unlikely to be able to benefit as very few have around £15,000 for a deposit.
“It’s easy to see why so few have bought in the last six months. There’s little availability when it comes to generous LTV ratios, and the few lenders still offering above 90% tend to charge a little extra to cover the cost of the increased risk of loss in the event of a forced sale.”