More than half of prospective first-time buyers believe it is difficult to be accepted for a mortgage, according to new research from Yorkshire Building Society.

Its No Way Home? report found that 56% of aspiring homeowners thought securing a mortgage would be difficult. Among existing homeowners, 40% held the same view.

For many first-time buyers, however, the perception of how difficult it is to obtain a mortgage may be worse than the reality.

Deposits remain a major concern

The research found that 39% of prospective buyers considered the need for a large deposit to be one of the biggest barriers to owning a home.

Saving a deposit can undoubtedly be challenging, particularly while paying rent and coping with rising household costs. However, first-time buyers do not necessarily need the enormous deposits they sometimes believe are required.

There are mortgages available for buyers with deposits of 5% or 10%, subject to individual circumstances and lender criteria. Some lenders may also accept gifted deposits from parents or other close family members.

Other options—including joint borrower sole proprietor mortgages and certain family-assisted arrangements—could help some buyers increase their borrowing capacity or purchase sooner.

These solutions will not be suitable for everyone, but they demonstrate why it is worth checking what may be possible before assuming homeownership is out of reach.

A lack of mortgage knowledge can create unnecessary barriers

A further 15% of prospective buyers said that a lack of understanding or education about mortgages was preventing them from moving forward.

This is understandable. Mortgage lending criteria can be complicated and vary considerably between lenders.

One lender may decline an application that another is willing to consider. Different approaches can apply to:

• Self-employed income

• Overtime, bonuses and commission

• Credit history

• Existing financial commitments

• Gifted deposits

• Contractors and temporary workers

• Applicants purchasing with support from family members

Online calculators can provide a rough indication of affordability, but they rarely reflect the full range of lender criteria or an applicant’s individual circumstances.

Mortgage advice appears to make a significant difference

One of the most encouraging findings was that 71% of people who had received mortgage advice said it made buying a home easier. Only 5% felt that advice had made the process more difficult.

Separate research from the Building Societies Association found that almost half of people who would like to buy a home had never spoken to a mortgage lender or adviser about their options.

This means some aspiring homeowners could be ruling themselves out without knowing how much they might be able to borrow, what deposit they would need or which lenders may be suitable.

You may be closer than you think

The first step does not have to be making a mortgage application or viewing properties. It can simply be an initial conversation to establish what is realistically achievable.

A mortgage adviser can help you understand:

• How much you may be able to borrow

• The deposit you are likely to need

• What your approximate monthly payments could be

• Which lenders may consider your circumstances

• Whether anything should be improved before applying

• The likely costs involved in buying your first home

Even if you are not ready to buy immediately, obtaining clear information can help you create a realistic plan.

At Chetwood Lloyd Mortgages, we provide independent, fee-free mortgage advice and have access to more than 100 lenders. We will explain your options clearly and help you understand whether buying your first home could be more achievable than you currently believe.

If you are considering buying your first property, speak to us before ruling yourself out.

Your home may be repossessed if you do not keep up repayments on your mortgage.