A new study from Santander Mortgages has revealed striking misconceptions and massive knowledge gaps among aspiring first-time buyers as they prepare to make the biggest purchase of their lives.
Researchers surveyed 2,000 non-homeowners and found that first-time buyers need a great deal of help to understand the homebuying process.
Nobody expects young first-time buyers to know everything about buying a property… but the misconceptions revealed in new research are as worrying as they are funny. Here are some of them:
· 60% of aspiring homeowners think they could get a mortgage up to ten times their income
· 75% believe LTV stands for “Long Term Value” as in expected house price increases
· 60% think “exchange” is when you hand over keys on moving day
· 43 per cent expect to get any fees already paid refunded if a chain collapses
· 22% think the estate agent will pay for the survey of a property
So to try to make people more aware of the risks and responsibilities in the home buying process, Santander has launched 1000 free in-branch educational events across the UK to educate potential buyers.
While aspiring new homeowners may lack some knowledge about various aspects of the homebuying process, they are typically prepared for the financial costs associated with getting on the ladder.
In fact, on average new buyers are overestimating the typical fees involved for solicitors, surveys, removals and land registration.
Although 58% admit they do not know what stamp duty actually is, new buyers are aware that it is an added cost that they must factor into their purchase.
Miguel Sard, Managing Director, Santander Mortgages, said, “The homebuying process can sometimes seem very complicated and old fashioned, with lots of confusing jargon.
“While first-time buyers can access a raft of help and advice when it comes to picking the right mortgage, we want to go one step further, helping first-time buyers on the road to homeownership in as many ways as we can. From tips on budgeting to avoiding solicitor scams; buying insurance to having a kettle at the ready on moving day; our new events are designed to arm buyers with everything they need to know to avoid potential pitfalls and get the home that’s right for them.”
To book a place at an event in a local branch simply visit: www.santanderevents.co.uk/events
To read Santander’s in-depth report on the UK’s first-time buyers, visit Download Santander’s first time buyer study as a PDF.