Almost two thirds (64%) of first-time buyers (FTBs) are unaware of the higher LTV options available to them, Pepper Money has found.

The firm’s latest specialist lending study of over 4,000 British adults revealed that 32% of people said they don’t know the size of deposit needed to buy their first home, while the same proportion think they need at least 20% or more.

Pepper Money said that "this misconception is a big hurdle" for hopeful homeowners, with 32% stating that the biggest barrier to homeownership is saving for a deposit.

While 69% of people who don’t currently own their home said they would like to in the future, 22% think it will take more than five years for them to be in a financial position where they can own their home.

However, 36% said they will never be in a position to do so.

Head of strategic accounts at Legal & General, Zara Bray, said: "Homeownership in the UK is still desirable and brokers play an important role in helping customers to achieve those dreams. This research highlights an opportunity to help thousands more customers who are currently writing off their chances of buying their first home. I believe the industry can do more to educate the public about the options available to them.

"Lender innovation is key, together with brokers who can market those products, criteria, and services to their customer base in order to elevate the opportunities available to FTBs. These efforts will help, not only to raise awareness and understanding amongst customers, but it will also help brokers to grow their business."

Director of business development at Pepper Money, Ryan Brailsford, added: "The message to brokers is clear – there are customers out there who need your professional advice to help them achieve their homeownership goals."

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