First-Time Buyer Myth-Buster: The Beliefs That Are Keeping You off the Property Ladder

A study published by Lloyds Bank in August 2026 found that more than a third of prospective first-time buyers are so worried about being rejected that they haven't even started the conversation. Many are making real sacrifices - delaying travel, putting off marriage, not having children - while waiting to hit a financial standard they've invented for themselves.

Here are the most common myths we hear and what's actually true.

Myth 1: "I need at least a 20% deposit."

A third of would-be buyers believe a 20% deposit is a minimum requirement. It isn't. Many lenders will consider applications with a 5% deposit and as of early 2026, there are 489 mortgage products available at 95% LTV, the highest number in almost 18 years. Some specialist products go lower still. A bigger deposit gives you access to better rates, but it is not a condition of getting started. moneytothemassesfinancialreporter

Myth 2: "My student debt will stop me getting approved."

More than half of prospective buyers believe existing debt would automatically disqualify them from a mortgage. Student loans work differently to other debt in a lender's assessment, they're treated as a regular outgoing, not a black mark. What lenders care about is whether your monthly commitments are affordable alongside a mortgage payment. A student loan doesn't close the door. It's just one line in a wider affordability picture. mpamag

Myth 3: "My credit history isn't perfect, so I won't qualify."

65% of aspiring first-time buyers believe bad credit means they cannot get a mortgage. In reality, most lenders don't expect perfection. They expect normal human financial behaviour. A missed payment from a few years ago, a period of high credit card usage that's now under control, or limited credit history are all very different from ongoing financial problems and many lenders treat them that way. What matters most is where you are now, not where you were at your worst. hoa

Myth 4: "I need to find a property before I speak to a broker."

A quarter of first-time buyers think they must secure a property before exploring mortgage options. This one actually costs people. Speaking to a broker early before you've found anywhere means you know exactly what you can borrow, you have a mortgage in principle ready to go, and estate agents take you seriously from the first viewing. Buyers who do this move faster, make better decisions, and miss fewer properties. hoa

Myth 5: "I'm on a zero-hours contract, so there's no point applying."

54% of prospective buyers cited being on a zero-hours contract as something that would block their application. Some lenders won't consider it. Others will, and they'll look at your income history, how long you've worked that way, and whether your earnings are consistent. It's not automatic. But it's not automatic rejection either. The answer is to find the right lender for your circumstances, which is exactly what a broker is for. mpamag

Myth 6: "My bank will give me the best deal."

40% of first-time buyers believe their best option is to get a mortgage through their existing bank. Your bank can only offer its own products, it has no reason to tell you something better exists elsewhere. A broker searches across the whole market, finds the most competitive deal for your specific situation, and protects your credit file from the damage of multiple rejected applications. financialreporter

The Bigger Point

Over half of prospective buyers have delayed major life milestones while saving for a deposit they may not even need to be as large as they think. That's the real cost of these myths - not just financial, but personal. moneytothemasses

The mortgage market in 2026 is more flexible than most first-time buyers realise. The only way to know what's actually possible for you is to have the conversation.

Speak to Endurance Mortgages today. It costs nothing to find out where you actually stand.

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Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances. 

Endurance Mortgages Ltd is an Appointed Representative of BrokerSync Ltd, which is authorised and regulated by the Financial Conduct Authority (1031981). Registered in England and Wales no. 15060351. Registered Address: Worting House, Church Lane, Basingstoke, Hampshire RG23 8PX.