Signs that banks are once again prepared to advance high loan-to-value (LTV) mortgages are proving illusory, as even borrowers with pristine credit scores are being rejected for these riskier loans.

Brokers said a number of mortgages for 85 or 90 per cent of a property's value were being advertised by lenders - but, in practice, were impossible to obtain. They have seen lenders reject applications on the basis of a poor credit score even though there were no apparent blemishes on the borrower's record.