Many aspiring first-time buyers are delaying purchases unnecessarily because they wrongly believe they need much larger deposits to buy a home, according to new research from Mortgage Advice Bureau (MAB).

The broker’s survey of renters planning to buy in 2026 suggests misconceptions around upfront costs could be suppressing buyer activity just as lenders are expanding their low-deposit mortgage products.

Research found that 39% believe a deposit of at least 10% is required, while only half correctly identified 5% as the typical minimum required deposit.

Awareness of alternative routes into homeownership also remains low. Around 73% were unaware of 95% loan-to-value mortgages, 80% had not heard of track-record mortgages, and 70% were unaware of the full range of family-assisted options available.

The biggest barrier isn’t always the reality of the deposit required.”

Rachel Geddes (pictured), Strategic Lender Relationship Director at Mortgage Advice Bureau, said: “For many aspiring homeowners, the biggest barrier isn’t always the reality of the deposit required – it’s what they believe that number needs to be.

Incorrect assumptions

“What this research shows is that a large proportion of buyers are making decisions based on assumptions, particularly around how much they need to save before they can even consider buying.”

The findings also suggest many prospective buyers may be ruling themselves out before fully exploring the options available to them. Although 27% said saving for a deposit was their biggest obstacle, another 31% said they did not know how to get started.

Geddes added: “With a wide range of low-deposit and alternative mortgage options now available, understanding the different routes to homeownership is crucial.”