This is the highest proportion since Paragon launched its Fact Index, which is a panel survey of 200 intermediaries, in 1996.

The data also found that interest-only home loans continued a downward trend after only making up just 14 per cent - possibly driven lower by worries over FSA regulation on mortgages, according to managing director John Heron.

This is the lowest proportion since the first quarter of 2004 and down from a high of 28 per cent recorded during the third quarter of 2007.

Mr Heron said: "Fact shows that residential mortgage lenders have been clamping down on interest-only loans since the start of the credit crunch and the decline of this market shows no signs of slowing down.

"The FSA signalled the demise of interest-only loans through changes proposed in the Mortgage Market Review and it appears that lenders are positioning their businesses in anticipation of regulatory changes.”

Jock Cassidy, director of Middlesex-based IFA Ashley Law, said: "I have noticed that repayment mortgages have increased in popularity. This is because when someone is borrowing money the regulator has put a greater onus on lenders to ensure that consumers can pay back the sum.

"Previously people were opting for interest-only, but the adverse publicity has meant people are shying from the product now. It is also true that advisers are now opting for the safer route and want to ensure borrowers do pay back the sum they have borrowed. And the safest way is through repayment mortgages."