MAB research suggests first-time buyers confused about deposits

May 20, 2026 by Brendan O'Neill

Surveys and Statistics

Research that has been published by the Mortgage Advice Bureau (MAB) suggests that people are delaying plans to buy a first home because of confusion about deposits.

MAB has described the findings as showing that there is a ‘deposit myth’ holding people back. It states that millions of people are putting off plans to buy because they believe average deposit levels to be higher than they actually are. The research also found that people were unaware of the options available for reducing the deposit needed. For example, 73% said that they did not know about mortgages with 95% loan-to-value (LTV), which typically require a deposit of just 5%.

Another 80% of research participants had never heard of ‘track record’ mortgages. These loans make it possible to buy if you can prove that you have paid your rent regularly and on time. When it comes to the various family-assisted loans on the market, 70% of those who took part in the research did not know about them.

In terms of what people expect to need for a deposit, 39% stated that they thought the minimum was 10% of the property value. Just half of the respondents knew that the standard deposit is 5%.

Rachel Geddes works for MAB. She told Financial Reporter:

“What this research shows is that a large proportion of buyers are making decisions based on assumptions, particularly around how much they need to save before they can even consider buying.”

This is where the help of a mortgage advisor with CeMAP training can make the difference.