More than half (56%) of prospective first-time buyers believe it is difficult to get accepted for a mortgage, a view also shared by 40% of current homeowners, a new report from Yorkshire Building Society shows.
Concerns around affordability drive this perception, with prospective buyers citing large deposit requirements (39%) as amongst the biggest barriers they face. The Society says this growing perception reinforces the importance of professional mortgage advice.
Almost two-thirds (65%) of repeat renters (defined as those who rent and do not expect to buy) also said that it would be difficult for them to be accepted for a mortgage – indicating that many of this group view homeownership as being out of reach.
However, the research also suggests that advice can have a transformative impact. More than seven in ten (71%) people who had used mortgage advice services said it made it easier for them to buy a home, while just 5% felt it made the process more difficult.
Aspiring buyers demonstrate uncertainty about where to start and how mortgages actually work in practice, with 15% saying they feel there is a lack of understanding or education on the topic.
This supports research carried out by the Building Societies Association earlier this year, which found that almost half (47%) of people who want to buy their own home have never spoken to a lender or mortgage broker to check what options are available to them.
Their research also found that 67% of aspiring buyers said they could buy sooner than they thought after being shown low or no-deposit mortgage options, demonstrating the vital role brokers play in closing the gap between perception and reality.
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, added: "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."
