First time buyers are facing a credit crunch as Britain’s biggest banks axe low deposit loans.

The top lenders have axed loans for deposits of 10% or less for the first time ever after being inundated with applications from wealthy families attempting to take advantage of the stamp duty holiday.

There were 1,172 mortgage deals for those with a deposit of 10% or less last September compared with 76 now, according to the financial information firm Moneyfacts.