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.

Half of First-Time Buyers Unaware of Increased Borrowing Power

Half of first-time buyers are unaware that their borrowing power has improved in recent months, according to research from Mortgage Advice Bureau (MAB). Some borrowers could now access up to £40,000 more than they could 12 months ago.

The MAB research, which surveyed 1,000 renters planning to buy their first property in 2026, found that 27% identified saving for a deposit as the biggest barrier to homeownership. Additionally, 73% of respondents were unaware that 5% deposit mortgages are available.

The findings suggest that many aspiring buyers may not fully understand recent changes in mortgage borrowing options, potentially leading them to underestimate what is currently achievable. The research also revealed that first-time buyers are spending an average of 6.04 years saving for a deposit before considering a purchase.

MAB indicated that some buyers may be delaying homeownership due to outdated perceptions about deposits and affordability. As lender affordability criteria continue to evolve, some aspiring buyers may now be in a stronger position to buy than they realise.

The research also found that 47% of aspiring buyers would consider purchasing immediately if mortgage repayments were similar to their current rent. This suggests that monthly repayment affordability remains a key factor influencing buyer confidence, despite recent changes in lending flexibility and borrowing potential.

These findings are relevant for UK letting agents and inventory clerks, as they highlight ongoing shifts in the first-time buyer market and the importance of up-to-date information on mortgage options for prospective tenants considering homeownership.