Access to mortgage finance improves, but affordability still holding buyers back
People’s confidence in getting a mortgage is growing, but affordability continues to be the biggest barrier to buying a home, according to new research from the BSA.
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Katie Wise
- Concerns about getting a mortgage fall as a barrier
- Affordability remains the biggest perceived barrier to buying a home
- The findings come as borrowers await the latest interest rate decision
The latest BSA Property Tracker shows just over one in three people (37%) now see access to a mortgage as a barrier to buying a home, down from almost half (48%) two years ago[1].
Affordability remains the challenge
Mortgage affordability has improved over the last two years, with fewer people citing monthly repayments as a barrier (down from 63%[2] to 55%). Even so, affordability remains the biggest challenge, with monthly repayments and raising a deposit (56%) continuing to top the list of obstacles.
The research also reveals the dilemma facing many people. Just 16% believe now is a good time to buy, yet, people are almost three times more likely to expect house prices to rise over the next year (38%) than fall (14%), suggesting that for many, waiting doesn’t necessarily feel like the answer.
Housing market confidence has strengthened over the last three months, with the Property Tracker’s confidence index improving by 8 percentage points to -18%. While sentiment remains in negative territory, as it has for almost five years, it is another sign that confidence is gradually returning to the market.
Paul Broadhead, Head of Mortgage and Housing Policy at the Building Societies Association, said:
"For too long, many aspiring homeowners have assumed getting a mortgage was the biggest barrier to buying a home. That's beginning to change. Lender innovation, greater flexibility around loan-to-income lending and the FCA's mortgage reforms are helping more creditworthy first-time buyers access the market.
"Affordability is now the real challenge. Tomorrow's Bank Rate decision will be closely watched, but whatever the outcome, too many people are still ruling themselves out without ever speaking to a lender or broker. Before deciding homeownership isn't for you, find out what's possible, you may be closer than you think."
[ENDS]
Press contacts:
press.office@bsa.org.uk
Tanya Jackson, tanya.jackson@bsa.org.uk Tel: 07881 501098
Katie Wise, katie.wise@bsa.org.uk Tel: 020 7520 5904
Debbie Enever, debbie.enever@bsa.org.uk Tel: 020 7520 5926
Notes to Editors:
The BSA's Think Again campaign encourages prospective first-time buyers to explore the range of mortgage options available through building societies before deciding home ownership is out of reach. Previous BSA research found that almost half (47%) of aspiring first-time buyers had never spoken to a lender or mortgage broker, despite many potentially being eligible for products that could help them buy sooner than they expected.
Notes on the research
- Total sample size was 2,052 adults. Fieldwork was undertaken between 10th – 13th July 2026. The survey was carried out online.
- September 2024 data based on sample size of 2016 adults. Fieldwork was undertaken between 2nd - 3rd September 2024. The survey was carried out online and are representative of all GB adults (aged 18+).
- The figures have been weighted and are representative of all GB adults (aged 18+).
- All figures, unless otherwise stated, are from YouGov Plc.
About the Building Societies Association
The Building Societies Association (BSA) represents all 42 UK building societies, including both mutual-owned banks, as well as 8 of the largest credit unions. Building societies and mutual-owned banks have total assets of almost £670 billion and together with their subsidiaries, hold residential mortgages of £499.1 billion, 29% of the total outstanding in the UK. They also hold £502.2 billion of retail deposits, accounting for 23% of all such deposits in the UK. Building societies and mutual-owned banks account for 46% of all cash ISA balances.
With all of their headquarters outside London, building societies employ around 52,300 full and part-time staff. In addition to digital services, they operate through approximately 1,300 branches, holding a 35% share of branches across the UK.