The Deposit Myth That’s Keeping North Wales Buyers Stuck in Rented Homes

Thousands of people across the UK are putting their homeownership plans on hold – not because they can’t afford to buy, but because they believe they can’t. New research from Mortgage Advice Bureau (MAB) has revealed that a widespread misconception about deposit sizes is quietly keeping aspiring buyers out of the market, and it’s a problem we see reflected in conversations with first-time buyers across Anglesey and Gwynedd every week.

The research surveyed renters who were planning to buy in 2026. It found that 39% believed they needed a deposit of at least 10% before they could even consider applying for a mortgage. Only half correctly identified 5% as the typical minimum. That gap between perception and reality is significant (and costly), in terms of time spent saving for a target that doesn’t actually exist.

What the numbers mean in practice

On a £200,000 property, which is a realistic price in many parts of North Wales, the difference between a 5% and a 10% deposit is £10,000. For someone saving £500 a month, that’s an additional 20 months of waiting. For many renters, that’s rent paid, savings delayed and the goalposts apparently never getting any closer.

The cruel irony is that while buyers are saving towards an inflated target, lenders have been quietly expanding their range of low-deposit mortgage products. 95% loan-to-value mortgages are more accessible than many people realise, yet MAB’s survey found that nearly three quarters of would-be buyers were unaware they existed. Track-record mortgages – products that use a rental payment history to support a mortgage application, were unknown to 80% of respondents. Family-assisted options, including schemes where a relative’s savings or property are used to support the application, were unfamiliar to 70%.

Why it matters for first-time buyers in North Wales

North Wales offers genuine value compared to other areas of theUK, with a range of properties across Anglesey and Gwynedd that remain accessible to first-time buyers, particularly those with a small deposit and a solid employment history. But that affordability only translates into opportunity if buyers actually make their enquiries.

The MAB research also found that 31% of prospective buyers said they didn’t know how to get started with buying a home, separate from those citing deposit-saving as their main barrier. That’s a significant proportion of people who have, in effect, opted themselves out before speaking to anyone who could actually help.

Rachel Geddes, Strategic Lender Relationship Director at Mortgage Advice Bureau, put it plainly: “For many aspiring homeowners, the biggest barrier isn’t always the reality of the deposit required – it’s what they believe that number needs to be.” (via The Negotiator)

The first step costs nothing

If you’re renting in North Wales and wondering whether buying is within reach, the most useful thing you can do is have a conversation. Not a commitment, not an application – just a conversation. Finding out what you can actually borrow, based on your income, deposit and circumstances, is far more useful than calculating how long it will take to save another £10,000 towards a threshold that may not apply to you.

At Williams & Goodwin, we work with first-time buyers regularly and are happy to talk through what’s available in your area and price range. Getting that initial picture often changes things considerably. The deposit you think you need and the deposit you actually need may be very different numbers. It’s worth finding out.

The Williams & Goodwin offices at Holyhead and Llangefni also have agencies for the Principality Building Society where we could help you with saving account options.

So, if you are thinking about stepping onto the property ladder, please contact your local team who are here to help you realise your dreams.

Further reading: First-time buyers held back by ‘deposit myth’ – The Negotiator, May 2026