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Do first-time buyers understand the mortgage process?

home insurance

Enables IFAs in Bishop’s Stortford know that some first-time buyers are not as fully informed of the mortgage process as they could be. According to a recent survey by Payment shield 

52% of UK adults aged 18-34 say they have a fairly or very bad understanding of the whole mortgage process from beginning to end.

As part of the picture it’s important to understand that for the first time in a decade, the average age for a UK first-time buyer rose from 30 to 31, with the average cost of a first home in the UK at £196,223 according to research from Savills this year. “This is a cohort lacking in confidence and knowledge about both the mortgage and insurance processes, meaning that they need more guidance.” Says the study.

UK adults under 35 also seemed to display a similar lack of understanding of the types of insurance required at different stages in life, with 53% declaring their knowledge fairly or very bad. The research suggests one of the biggest barriers to understanding the insurance and mortgage processes could be financial jargon: a third (33%) of 25 to 34-year olds say they are not very or not at all confident that they’d comprehend the language used to explain financial products and/or services, with a similar proportion (37%) among the 18-24 age group.

If you are a first-time buyer and looking for a mortgage advisor to help you through the jargon Enables IFAS can help. Experienced advisers can give you the confidence and knowledge about both the mortgage and insurance processes, to help you make your home buying dreams come true. Enable can provide valuable, tailored and, it would seem necessary guidance. Hopefully forming an understanding to become trusted experts who can be relied on for other major financial transitions.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage


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