There has been a massive rise in first time buyers seeking advice as lenders begin to return to higher loan-to-value lending.

Forty per cent of all advice sought on mortgage matters in June came from first time buyers looking for guidance. This is the highest level since April last year, figures from unbiased.co.uk show.

First time buyers however, are finding optimism as the market has returned to the spotlight in recent weeks. A number of lenders have returned to the market, offering packages to buyers with 10 per cent or even 5 per cent deposits.

This week, Housing Minister grant Shapps encouraged more lenders to follow the lead of Lloyds TSB in offering mortgages to buyers, guaranteed by parents and other family members.

He also proposed that buyers be allowed to chip in with mates to raise a necessary deposit, with the products being labelled 'mates mortgages'.

Recently the government has started a jointly run scheme with house builders which will allow first time buyers with a small deposit to top up their equity with a loan they can pay back when they sell their new build property.

Karen Barret, chief executive of the website said: " Figures suggest that confidence in the mortgage market is returning."

"We are seeing quite fast paced changes with a number of mortgage lenders having made their products more available by increasing the loan-to-value and offering attractive rates as the base rate remains hiostorically low."