Concern has been voiced that some first time buyers are so desperate to get on the property ladder that they are willing to use a credit card or loan to pay for their deposit.
According to research by SmartNewHomes, one in ten first time buyers are prepared to take on extra debt in order to fund a deposit, hoping that they will be able to repay the borrowing in the future.
Despite a recent rise in the number of mortgages available to those with smaller deposits, actually raising that initial amount of money still remains the biggest financial hurdle to home ownership.
Half of those surveyed said they expect to use their savings, while nearly one fifth (18%) intend to turn to the generous terms usually offered by the 'bank of mum and dad'.
However, 10% of people admitted they are intending to borrow money on credit cards and bank loans to secure the necessary lump sum.
Such are the barriers facing those looking to fulfil their home ownership dreams, 16% of those questioned are resigned to never owning their own home, while a fifth believe they will be in their 40s before it might happen.
"Regardless of the fact that prices have fallen across most of the UK, first time buyers still feel homes are out of their reach," said Steve Lees, director at SmartNewHomes.
"With renting becoming increasingly expensive they are resorting to credit cards and bank loans as a way of getting on the ladder.
"Interest rates remain low, making mortgages relatively cheap, so buyers are prepared to take on debt in the hope they will be able to pay it back at a later date.
"We would recommend that those thinking about making their first home purchase but struggling to raise a deposit look at all the sensible options available to them, including Government shared equity schemes like FirstBuy, incentives and deals offered by housebuilders, and the possibility of buying with family and friends."
Find the best mortgage for your first home - Compare first time buyer mortgages
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.