Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Brokers Highlight Key Misconceptions Among First-Time Buyers

Many first-time buyers are delaying homeownership due to misunderstandings about their eligibility and affordability, according to industry figures interviewed by Mortgage Strategy. These misconceptions can have significant long-term financial consequences for renters who postpone buying a property.

Jeremy Duncombe, managing director of Accord Mortgages, interviewed Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, about the challenges faced by first-time buyers. Geddes stated that many potential buyers assume they cannot purchase a home yet, when in reality they may be closer to buying than they realise. She noted that this misconception can have a significant long-term impact, as renters could miss out on substantial potential wealth creation over a 30-year period by continuing to rent rather than buying a home.

Geddes emphasised the importance of early advice, explaining that many people rule themselves out before speaking to an adviser. Early guidance can help buyers understand what is genuinely possible, challenge misconceptions, and make informed decisions before unnecessarily delaying their plans.

She also highlighted the crucial role of early financial education. Many first-time buyers have misconceptions about the size of deposit needed, how affordability is assessed, and their eligibility for a mortgage. Geddes pointed out that eligibility is often more nuanced than people realise, and that simple financial decisions—such as missing a mobile phone or credit card payment—can unintentionally damage future borrowing prospects.

According to Geddes, the most common misconception among first-time buyers is around affordability. Many do not fully understand how lenders assess income and borrowing capacity, often assuming they can borrow less than they actually can. Research cited in the interview found that 50% of aspiring buyers are unaware that borrowing power has improved compared to 12 months ago. Credit is another area of confusion, with some buyers believing they cannot have any existing debt, while others assume that having credit cards or loans will automatically count against them. In reality, lenders look at how credit is managed, and responsible borrowing can often be viewed positively.

These insights are particularly relevant for UK letting agents and inventory clerks, as they highlight the ongoing challenges faced by renters considering a move into homeownership and the importance of accurate information and early advice in the property market.