It has been revealed that more than 50% of prospective first-time buyers are confused by mortgage and housing terminology, a recent study confirmed – complicating the process for younger buyers who are looking to take their first steps onto the property ladder. What this has also sadly shown is that many may be missing out on the very incentives there to help them.
The data showed that consumers did not understand:
- Help to Buy equity loan – 52%
- Lifetime ISA – just under 50%
- Starter Home Initiative – in excess of 60%
- Shared Ownership – 35%
- Help to Buy ISA – 36%
The figures make for worrying reading with those surveyed who have purchased their first home in the last 3 years stating that aside from raising the initial deposit, that understanding the terminology and process was the hardest of the home buying process.
Legal jargon, the time to complete the purchase and the administration were also noted have caused particular difficulty. More encouragingly however, over 70% of the first time buyers surveyed said they believed the process was worth it in the long run, and over 80% were happy with the mortgage product they had chosen.
Most worrying of all is that this lack of understanding is costing first time buyers more, with over half of those surveyed saying they had spent more than they intended throughout the whole process.
Over the last 3 years a third of those who have begun they buying process have had a sale fall through costing them fees of around £1,500 – £1,800.
At One 77 we believe that buying your first home can be challenging enough and that it should not be made harder by jargon and terminology. We make it our mission to keep our customers informed of the process they are undertaking in simple, easy to understand language and ensure that you are aware of all of the initiatives and products that are available to you. The aim of this is to ease the anxiety at what should be one of the most exciting times of your life, and also to ensure that our relationship with you goes beyond your second and third home or remortgage.
To find out more about what is available to you as a first time buyer and to see how much you can borrow to start your journey on the property ladder please call us on 01249 474952 or fill out the form below and we will be in touch.