
Think you can’t afford to get on the property ladder? Well, think again. Thanks to changes in the mortgage market, the reality may be very different.
Many aspiring first-time buyers (FTBs) have the wrong idea when it comes to mortgages, new research has found.
A study by mortgage brokers Alexander Hall says many would-be FTBs don’t realise just how much the mortgage landscape has improved in the past 12 months.
As a result, they mistakenly assume they’re locked out of owning a home.
The survey identified several common myths stopping people from achieving their dream of buying.

My deposit isn’t big enough
The study found that 53% of aspiring buyers thought they needed a deposit of at least 10% to get a mortgage, while 14% were unsure of the rules.
In fact, it’s possible to get a mortgage deal with a 5% deposit.
And, due to a recent easing of lending rules, the number of 5% deposit mortgages on the market is at a 17-year peak.
I don’t earn enough
The survey found that a third of people thought they could only borrow up to three times their income.
However, a relaxation of loan-to-income requirements means that most banks lend at a ratio of 4.75 to 5 times income.
Alexander Hall data says the average lending ratio for FTBs is currently 4.08 times income.
I can’t get a mortgage because I’m self-employed
For years, self-employed workers have complained that trying to get a mortgage when you don’t have a permanent employer to vouch for your earnings is a real struggle.
This explains why a third of survey respondents believed that you needed three years of financial accounts before you could apply for a mortgage.
But things are changing. These days, many lenders require only one or two years of certified accounts.
Do your homework
For so long we heard about how hard it was to get on the property ladder as an FTB (let’s face it, it was hard).
However, with interest rates on a downward trajectory and the mortgage market becoming more accessible, the landscape has shifted.
If you did your sums a few years ago and found that your finances or work set-up weren’t right for securing a mortgage, it’s worth taking another look now.
If you’re hoping to take your first steps into the property market, get in touch with us today.
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*The information in this article does not constitute financial advice.