More than half of prospective first-time buyers believe securing a mortgage would be difficult, according to research from Yorkshire Building Society.
The building society’s No Way Home? Restoring Britain’s Housing Ladder report found that 56% of prospective first-time buyers thought they would struggle to be accepted for a mortgage.
The concern was shared by 40% of existing homeowners, while 39% of prospective buyers identified the need for a large deposit as one of the principal barriers to purchasing a property.
Among repeat renters — defined as tenants who do not expect to buy — 65% said it would be difficult for them to secure a mortgage, suggesting that many regard homeownership as being beyond their reach.
However, 71% of people who had received mortgage advice said it had made buying a home easier. Only 5% believed that taking advice had made the process more difficult.
The findings suggest that many aspiring buyers remain uncertain about how to begin the homeownership process and how mortgages work. Some 15% cited a lack of understanding or education as an obstacle.
Separate research published by the Building Societies Association earlier this year found that 47% of people wishing to buy a home had never spoken to a lender or mortgage broker about the options available.
After being shown low or no-deposit mortgage products, 67% of aspiring buyers said they could purchase sooner than they had expected.
Tom Simpson, managing director of homes at Yorkshire Building Society, said: “For many aspiring homeowners, the challenge is not simply affordability – it’s understanding what options are available to them and how to navigate an increasingly complex mortgage market.
“Our findings show that mortgages are widely perceived as inaccessible, yet those who seek advice are far more likely to have a positive experience.
“This demonstrates the gap between perception and the experience of many borrowers who opt for professional support, and highlights the essential part played by advisers in helping people understand what’s available and move forward with confidence.
“As affordability pressures continue to affect households across the country, brokers can provide education, reassurance and tailored guidance, to help borrowers to prepare earlier and make informed decisions to help them achieve their homeownership dreams.”
Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, said: “Accord’s findings mirror exactly what we’ve seen in our own research into first-time buyer sentiment. Prospective buyers aren’t short on ambition – they’re short on information.
“Half of first-time buyers thought the minimum deposit amount was 5%, and almost four in ten thought they’d need 10% or more. Meanwhile, 73% had no idea that 95% LTV mortgages exist at all, and half didn’t even realise their borrowing power has improved.
“That’s not a small knowledge gap: it’s a fundamental misunderstanding of what’s available. Mortgage products and criteria have moved on faster than consumer understanding has, which is where an adviser is irreplaceable.
“Their first job is often correcting the picture: showing someone the deposit they’d need, the options they didn’t know existed, and the route that gets them from renting to owning sooner than they’d assumed. The gap between perception and reality is closable – it simply needs a conversation.”
