First-time buyer mortgage products have soared to their highest level since 2007 with the number of 90% and 95% loan-to-value mortgages now totalling 723 products, Moneyfacts data shows.
This marks a 73% increase on five years ago, when buyers with small deposits only had the choice of 194 products.
Charlotte Nelson, finance expert at Moneyfacts, said: "Surprisingly, Help-to-Buy doesn't account for all of these new products, but with the number of deals totalling 437 before the scheme was launched, it is clear that H2B acted as a catalyst for banks and building societies to get in on the act."
With mortgage competition fierce, the average rates for 95% LTV deals have plummeted to the lowest on record, with the average 2-year fixed rate now standing at 4.47%.
Nelson said: "The boost in numbers and the lower rates suggest that lenders are finally recognising the importance of first-time buyers, who have often been considered the life-blood of the housing market.
"As a result, borrowers need to try not to be swayed by the H2B scheme as the potential to find a better deal elsewhere is high. Many providers have now thrown down the gauntlet by not only offering a competitive rate but a great all-round package, which will help to lower the overall cost of the mortgage."
While the availability of deals for small deposit holders has risen, first-time buyers still lack the same choice as those with larger deposits with banks continuing to favour less risky buyers.
Nelson added: "The improving higher-LTV market is also not an indication that riskier lending has returned, as the Mortgage Market Review is now firmly entrenched in bank policy, and only borrowers with a squeaky clean credit history and enough savings will be able to make the first step onto the housing ladder.
