First-time buyers held back by erroneous beliefs

August 30, 2026 by Brendan O'Neill

Property Market

Lloyds has published a survey suggesting that over half of the people who want to buy a first home are being held back by erroneous beliefs.

This survey spoke to more than 1,000 people who are hoping to buy in the next five years. The results show a large proportion of them have beliefs about mortgage lender criteria that are wildly inaccurate. In particular, 58% of those who took part in the survey thought existing debts automatically ruled them out when it comes to getting a mortgage. Lloyds Banking Group commissioned Find Out Now to carry out the survey.

Another 54% of the respondents thought that being employed on a zero-hours contract basis ruled them out. Meanwhile, 30% thought a standard deposit was 20% of the property value.

The survey highlighted a whole range of mortgage misconceptions. Among the other circumstances that respondents thought would prevent them from getting one were self-employment (24%), credit score flaws (30%) and being on benefits (38%).

The actual truth of the matter is that criteria vary from lender to lender. Some of these things would rule a person out for one product, but not for another one.

Amanda Bryden is the Lloyds head of mortgages. Talking to Mortgage Introducer, she said:

“Speaking to a mortgage advisor or broker early on can help you understand what options are available. Many people are surprised to find they’re in a stronger position than they expected.”

This survey shows once again why advisors with the CeMAP qualification are so essential to prospective borrowers.