According to the Council of Mortgage Lenders first time buyers are enjoying more success with them borrowing on average 80 per cent of their property's purchase price in April.

The news comes after lenders appeared to be loosening their lending criteria.

The number of loans approved for first-time buyers also increased by 8 per cent in April compared with the month before and was also up slightly compared with last year.

High deposits and difficulties with settling a mortgage have left many first time buyers out in the cold and believing that they would never own their own home.

However, the average 80 per cent loan to value level in April is higher than has been seen duriing most of the last two and a half years.

Michael Coogan, CML director general said: "The market continues on a stable footing and the increase in house purchase lending is a good sign that the stability will continue throughout 2011.

However, the economic outlook, coupled with Bank of England subdued approvals data for April, suggests a muted summer for mortgage completions so we do not expect further increases in lending over the coming months."