Half of first-time buyers are unaware that borrowing power has improved in recent months, with some borrowers potentially able to access up to £40,000 more than they could 12 months ago.
The research from Mortgage Advice Bureau, which polled 1,000 renters planning to purchase their first property in 2026, found that 27% say saving for a deposit is the biggest barrier to buying while 73% are unaware that 5% deposit mortgages are available.
Together, MAB says the findings suggest many aspiring buyers may not fully understand how mortgage borrowing options have evolved in recent months, which could have lead some to underestimate what could now be achievable.
It also shows that first-time buyers are spending an average of 6.04 years saving for a deposit before considering a purchase.
MAB says this suggests some aspiring buyers may be delaying homeownership due to outdated perceptions around deposits and affordability.
However, as lender affordability criteria continue to evolve, some aspiring buyers may now be in a stronger position to buy than they realise.
Research also found that 47% of aspiring buyers would consider purchasing immediately if mortgage repayments were similar to what they currently pay in rent, suggesting many continue to assess homeownership affordability primarily through the lens of monthly housing costs.
This suggests monthly repayment affordability remains a key factor shaping buyer confidence, despite changes in lending flexibility and borrowing potential in recent months.
Mortgage Advice Bureau strategic lender relationship director Rachel Geddes says: “For many first time buyers, the biggest challenge isn’t just saving for a deposit – it’s knowing whether homeownership is actually within reach.”
“What this research shows is that many aspiring buyers may still be making decisions based on outdated assumptions around their borrowing potential, as lenders continue to introduce greater flexibility into the market.”
“While affordability pressures certainly remain, speaking to a mortgage adviser earlier in the process can help buyers better understand the options available to them, rather than ruling themselves out too soon.”
