Lenders have cut rates on a range of mortgage deals in a further sign that conditions are easing in the mortgage market.

However, new research suggests that sub-prime borrowers who are coming to the end of fixed-term deals could still see their repayments jump by almost 10 per cent when they remortgage.

Halifax, owned by HBOS, has cut interest rates by up to 0.4 percentage points for customers looking to borrow up to 90 per cent of a home's value. Britannia Building Society has also cut rates on similar deals by 0.2 percentage points.

It is the first time in recent weeks that rate cuts have been applied to deals for borrowers with loans worth up to 90 per cent of the value of their home. Lenders have been capitalising on lower inter-bank lending rates to offer better deals, but the best rates have been reserved for only the most desirable borrowers who have at least a 25 per cent deposit.

Experts welcomed the move to lower to cost of mortgages, but warned that lenders were sending mixed messages. The best deals are still only available to those with deposits of 40 per cent of their home's value or more.

Melanie Bien, of Savills Private Finance, the mortgage broker, said: "It is still the case that the higher the deposit or level of equity you have - and in many cases, you now need 40 per cent or more - the better the rate you are likely to get."

Halifax, the second largest mortgage lender, cut rates on a total of 31 of its mortgage deals and announced new deals with competitive rates for borrowers with at least a 40 per cent deposit, with rates from 5.59 per cent. Intelligent Finance and BM Solutions, also owned by HBOS, announced further cuts to buy-to-let and offset deals by up to 0.6 percentage points.

Meanwhile Woolwich, owned by Barclays, is reducing rates on its products by up to 0.38 percentage points for borrowers with at least 40 per cent equity.

Ms Bien added: "Rates have been falling but criteria is generally still not easing. Lenders have been checking credit histories and favouring only those with the cleanest record. Caution still remains in the market."

The number of lenders offering home loans to borrowers with less-than-perfect credit scores has fallen through the floor in the last 12 months, from 36 in July last year to just 13 today, according research by Moneyfacts.co.uk, the financial website. The number of deals available has mirrored this fall, dropping from 8,148 to 1252 currently on the market.

Those deals that are still available in the rapidly shrinking market are increasingly expensive and experts said the lack of competition means some rates are 2.75 percentage points higher than last year, adding up to £360 to monthly repayments for some borrowers.

Heavily sub-prime borrowers with very poor credit histories could find fixed-rate mortgage deals with rates of 6.30 per cent last year. Now the best similar deal comes with a rate of 9.05 per cent.

Darren Cook, of Moneyfacts.co.uk, said: "“Many borrowers on a light level of sub-prime assumed that if they kept on top of their financial affairs once their deal ended they would be able to move to a much cheaper standard residential deal, but due to stricter lending criteria from prime lenders this isn’t necessarily the case."