Almost two-thirds of first-time buyers are using side hustles to help build a deposit, with more than half saying the additional income has cut years from the time needed to save for a home.
Research from Mojo Mortgages found 64% of first-time buyers were supplementing their income through activities including online reselling and freelance work.
Among those using side hustles, 53% said the extra earnings had reduced their deposit-saving period by between two and three years.
Separate Mojo customer data shows almost 26% of first-time buyers have relied on gifted family deposits during 2026.
BUYERS STAY IN UNHAPPY JOBS
The pressure to become mortgage-ready is also influencing employment decisions.
Some 22% of first-time buyers surveyed said they had remained in a job they considered toxic in order to maintain income stability while applying for a mortgage.
The Censuswide research questioned 1,000 UK first-time buyers in April, comprising people looking for a property, actively going through the buying process and those who had purchased their first home during the previous 12 months.
The findings come as the government prepares to introduce Your First Home, which is intended to reduce the upfront deposit required by eligible buyers to 2.5%.
INCOME CAPS
However, analysis of Mojo’s own customer data between September 2024 and September 2026 suggests some buyers could miss out because of the scheme’s proposed household income limits.
Mojo says more than 13% of its first-time buyer applicants would exceed the proposed income cap, rising to more than 22% in London and Greater London.
John Fraser-Tucker (main picture, inset), Head of Mortgages at Mojo Mortgages, says: “Lowering the deposit barrier to 2.5% addresses one of the single biggest hurdles first-time buyers face – raising upfront cash while paying high private rents.
“However, introducing strict household income caps of £90,000 nationwide and £110,000 in London creates a delicate balancing act.
“On one hand, targeting support at lower-to-middle income households ensures government backing goes to those without access to family wealth.
“On the other, two average working earners buying together, especially in high-cost regions, can easily cross these thresholds, effectively locking out working couples who are already squeezed by high property values.”
Fraser-Tucker adds: “While deposit relief is welcome, restricting eligibility based on income caps risks shifting the goalposts for dual-income couples who still struggle to save a 10% deposit without the ‘Bank of Mum and Dad’.”
