Almost half of adults in the UK feel that only those people with large deposits will be able to secure a favourable interest rate, while 36 per cent believe that first time buyers struggle to obtain a mortgage.

According to new research, only 12 per cent of respondents believe that access to mortgages is easier now than during the last five years. Similar research last year revealed that 29 per cent thought that access to mortgages had improved. Despite some negativity in the results of the report, UK renters were generally positive about saving a deposit, finding an affordable property and mortgage, saying they had less of a barrier to becoming homeowners than in the previous year.

For 76 per cent of those renting, saving a large enough deposit will be the biggest obstacle to becoming a homeowner, while 67 per cent believe that finding an affordable property will be a barrier. The research indicates that affordability is likely to remain a challenge for first time buyers, especially as the average price of a property is around £200,000 and interest rates are set to rise.

Among renters who are aged between 45 and 54, 67 per cent had no intention of owning their own property. The managing director of Precise Mortgages, Alan Cleary, believes that lenders need to work on dispelling myths surrounding the industry, including lenders only considering those with a large deposit or not considering someone with a blemish on their credit history. Seeking guidance from a mortgage adviser who has graduated from a CeMAP course will help to alleviate some concerns for buyers.

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