Half of first-time buyers are unaware that borrowing power has improved in recent months, with some borrowers potentially able to get up to £40,000 more than 12 months ago.
The Mortgage Advice Bureau’s research, which surveyed 1,000 renters planning to buy their first home in 2026, found that 27% say saving for a deposit is the biggest barrier to buying, while 73% are unaware that 5% down payment mortgages are available.
In summary, MAB says the findings suggest that many would-be buyers may not fully understand how mortgage options have evolved in recent months, which could have led some to underestimate what might now be achievable.
It also appears that first-time buyers save an average of 6.04 years for a down payment before considering a purchase.
MAB says this suggests some would-be buyers are delaying homeownership due to outdated views on deposits and affordability.
However, as affordability criteria for lenders continue to evolve, some would-be buyers may now find themselves in a stronger position to purchase than they realise.
Research also found that 47% of prospective buyers would immediately consider a purchase if mortgage repayments were comparable to what they currently pay in rent, suggesting that many continue to assess the affordability of home ownership primarily through the lens of monthly housing costs.
This suggests that the affordability of monthly repayments remains a key factor in shaping buyer confidence, despite changes in credit flexibility and borrowing potential in recent months.
Rachel Geddes, strategic lender director at the Mortgage Advice Bureau, says: “For many first-time buyers, the biggest challenge is not just saving for a deposit, but also knowing whether home ownership is actually within reach.”
“What this research shows is that many would-be buyers may still be making decisions based on outdated assumptions about their borrowing potential, as lenders continue to introduce more flexibility into the marketplace.”
“While pressures on affordability certainly remain, speaking to a mortgage advisor earlier in the process can help buyers better understand the options available, rather than ruling themselves out too quickly.”