Nearly half of aspiring homeowners in the UK have never spoken to a mortgage broker or lender to explore their options, according to new research from the Building Societies Association (BSA). The findings highlight a significant knowledge gap among first time buyers about the mortgage opportunities available to them — particularly those offered by building societies.
Understanding the Research
The BSA represents all 42 UK building societies and seven credit unions. For this study, it surveyed 1,000 UK adults who have not yet bought their first home. The aim was to understand how prepared and informed prospective homeowners are when it comes to applying for a mortgage.
The results were telling. Forty-seven per cent of those surveyed had never spoken to a mortgage broker or lender, while a further 46% of those who had done so said their last interaction was more than a year ago. This shows that many future buyers are basing their assumptions about affordability and eligibility on outdated or incomplete information.
A Misunderstanding About Deposit Requirements
When participants were shown examples of mortgage options from building societies — including those that require no or low deposits — 67% said they could buy a home sooner than expected. This suggests that many first time buyers are unaware of the flexible lending solutions that exist beyond the mainstream banks.
Building societies, which are known for their more personalised lending decisions, often offer products designed to support those struggling to save large deposits. These might include family-assisted mortgages, guarantor loans, or schemes that allow for smaller deposit contributions. However, the study indicates that many first time buyers remain unaware of these opportunities simply because they haven’t yet engaged with a lender or adviser.
The Financial Challenges Facing First Time Buyers
The research also explored the main challenges preventing people from stepping onto the property ladder. Unsurprisingly, financial barriers dominate. The biggest concerns were:
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Affordability, highlighted by 64% of respondents
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Saving for a deposit, mentioned by 53%
Over half of respondents (59%) reported having less than £10,000 in savings, suggesting that many are struggling to meet standard deposit requirements. On average, respondents believed it would take them six and a half years to buy a home. Worryingly, one in three (32%) felt they might never achieve homeownership.
Such figures point to a broad sense of uncertainty and discouragement among potential buyers, particularly younger adults facing high rental costs and limited disposable income. While the challenges are real, the study indicates that perception may not always match reality — especially when alternative lending options are considered.
The Importance of Up-to-Date Information
Paul Broadhead, Head of Mortgages and Housing Policy at the BSA, believes the findings highlight a critical misunderstanding among first time buyers. He noted that many people assume homeownership is out of reach without ever checking what’s actually available to them. The research suggests this assumption could be preventing thousands from taking their first steps toward owning a home.
When first time buyers explore what building societies and specialist lenders offer, they often discover mortgage options that fit their unique circumstances. This includes flexible approaches to income assessment, shared ownership arrangements, and support for those with small deposits or varied employment patterns.
For instance, some building societies consider family income support or rent payment history as part of their affordability checks — something traditional lenders may not always accommodate. Understanding these different approaches requires up-to-date information, which only comes from engaging directly with lenders or brokers.
The Broader Picture for First Time Buyers
This research also sheds light on a broader behavioural trend: many aspiring homeowners postpone conversations about mortgages until they believe they are “ready.” Yet in practice, early discussions can help them plan more effectively, establish realistic savings targets, and identify schemes designed specifically for first time buyers.
Government-backed initiatives such as Lifetime ISAs, shared ownership, and First Homes also provide opportunities for buyers to reduce the financial burden of entry. However, without professional guidance or early research, these schemes often remain underused or misunderstood.
The Role of Building Societies and Brokers
Building societies play a unique role in the UK mortgage market. Because they are member-owned rather than shareholder-driven, they often place greater emphasis on community support and tailored lending. This can particularly benefit first time buyers whose financial profiles may not fit standard lending models used by high street banks.
Mortgage brokers, meanwhile, act as intermediaries who can compare products across multiple lenders — including building societies, banks, and specialist providers. Their role is especially valuable for first time buyers navigating the complex array of mortgage products for the first time. Despite this, the study’s findings show that many still have not had any conversation with a broker or adviser.
Closing the Knowledge Gap
The survey highlights a clear need for better financial education and more proactive engagement between lenders, advisers, and aspiring homeowners. While affordability challenges remain a significant concern, the study shows that lack of information is also delaying progress for many.
First time buyers are often closer to homeownership than they think. The key lies in understanding that mortgage products and lending criteria vary widely — and that many options are designed specifically for those taking their first step on the property ladder.
Early conversations, accurate information, and awareness of low-deposit or alternative mortgage schemes could reshape expectations for a large proportion of future homeowners.
Please note: This blog is for general information only and does not constitute financial advice.