First time buyers are spending years saving for a deposit, yet many may still be underestimating their borrowing potential, according to new research from Mortgage Advice Bureau (MAB).
According to the survey, which polled 1,000 renters planning to purchase their first property in 2026, 50% 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 increase in borrowing potential reflects a combination of easing mortgage affordability stress tests, improved lender flexibility, and changing market conditions, allowing some buyers to access larger loans than previously available.
However, MAB’s research suggests many aspiring buyers are still making decisions based on outdated assumptions around affordability and borrowing potential, despite changing lending conditions and greater lender flexibility.
Buyers underestimate what could now be achievable
While many aspiring buyers remain motivated to get onto the property ladder, the research suggests their understanding of the mortgage market has not kept pace with recent changes.
Among those first time buyers surveyed:
- 50% are unaware that borrowing power has improved, with some buyers potentially able to borrow £30,000–£40,000 more than last year
- 27% say saving for a deposit is the biggest barrier to buying
- 73% are unaware that 5% deposit mortgages are available
Together, the findings suggest many aspiring buyers may not fully understand how mortgage borrowing options have evolved in recent months, potentially leading some to underestimate what could now be achievable.
Aspiring buyers spend six years saving on average
The research also underlines the significant financial commitment many aspiring buyers make before stepping onto the property ladder, with those surveyed spending an average of 6.04 years saving for a deposit before considering a purchase.
This suggests some aspiring buyers may be delaying homeownership due to outdated perceptions around deposits and affordability.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.
Monthly affordability still shaping buyer perceptions
MAB’s 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.
Rachel Geddes, Strategic Lender Relationship Director, Mortgage Advice Bureau, said:
“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.”
Amanda Bryden, Head of Halifax Intermediaries & Scottish Widows Bank, added:
“With more low deposit options, new schemes, and greater flexibility in how lenders assess affordability, first time buyers have more opportunities to get onto the housing ladder than they did even 18 months ago.
"With so many options, it’s easy to underestimate what might be possible, but speaking to a mortgage adviser can bring clarity and confidence, helping you understand what you could achieve. So if you’re thinking about buying, I would say now is the time to have that conversation.”
Rachael Hunnisett, Director of Mortgage Distribution, April Mortgages, commented:
"Aspiring homeowners are spending years saving, making sacrifices, doing everything right, and yet many are still misinformed about how close homeownership could be. The mortgage landscape has shifted significantly in the last 12 months alone.
"Affordability criteria has broadened, lender flexibility has improved, and higher LTV options, up to 100%, exist that many first time buyers simply don't know about. That knowledge gap is the difference between a distant dream and having the keys to your first home in your hands, as this research by MAB highlights.
“The biggest risk right now is buyers ruling themselves out before they've even explored their options, based on outdated assumptions.
"However, early advice from a mortgage adviser with access to a wide range of lenders can be life-changing. Advice and mortgage innovation have always been fundamental in supporting homeownership, but in a market moving this fast, it matters more than ever."
