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Conducted among 505 people, the research showed 55 per cent of advisers have encountered difficulties finding loans for some of their standard customers while two-thirds of intermediaries have struggled to find remortgage products for sub-prime borrowers.

When questioned, 94 per cent also said borrowers have had to pay more while 92 per cent said criteria had become more stringent.

However, the situation is unlikely to get any worse, according to Mark Osland, director for Surrey- based Formula.

He said: "I think the situation will generally get better, but it is going to be a slow process.

"Lenders have the opportunity to make more money on a mortgage than in the past few years, so no doubt they want to lend money.

"The key is availability of money, and some of them do not have a problem with that.

"However, it is going to be a long time before we see a return to the 125 per cent mortgages seen in previous years."

Mr Osland said the main barrier to lending is the customers’ lack of deposit or equity, stating people with less than 5 per cent deposit will still struggle.

He said: "Overall, there is not a problem obtaining mortgages as long as people have the deposit or equity, and are prepared to pay the higher rates."