First-time buyers struggle with mortgage jargon
6th February 2019
The process of buying a first home is being made more difficult for many prospective buyers, who struggle to understand the terminology surrounding housing and mortgages.
Aldermore polled 1,501 people looking to buy a first home, and found that 52% of prospective buyers don't understand what the help-to-buy equity loan scheme is.
There was also some confusion around government saving schemes, with 47% admitting they don't understand lifetime ISAs, and 36% saying they are unclear on what the help-to-buy ISA is.
This could mean many future buyers are missing out on schemes that could help them save for a mortgage deposit, despite 89% saying it's difficult to get on the property ladder.
Damian Thompson, director of mortgages at Aldermore, said potential buyers "do not feel they are being informed enough about the options open to them", making it harder to buy a first home.
This lack of understanding is also affecting buyers financially.
Of people who bought a first home in the past three years, a third had a property sale fall through, costing an average of £1,545 in fees.
As a result, more than half (52%) of first-time buyers said they spent more than they intended.
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