Skipton Building Society has today revealed the top 40 questions that first-time buyers want to know the answers to but are too embarrassed to ask.
The list of questions which baffled first-time buyers include ‘should I offer less than the advertised house price?’ and ‘how much deposit will I need?’ followed by ‘how long does my mortgage offer last for?’.
Research commissioned by Skipton Building Society of 2,000 adult homeowners found 54% of people were confused about the whole buying process. And of these, eight in 10 felt too embarrassed to ask things like ‘what is stamp duty?’ and ‘when do I need to pay everyone for the work?’.
While those new to the intricacies of property purchase also wanted to ask, ‘how do I choose a solicitor?’, ‘what surveys do I need?’ and ‘how much can I afford?’.
60% of homeowners admitted they felt overwhelmed when talking to the likes of estate agents, solicitors, and mortgage advisors, and 68% were worried about looking stupid in front of the professionals.
Brokers play a key role in helping aspiring homeowners on to the property ladder, so for brokers to fully understand what is really puzzling their first-time buyer clients, will enable them to put their clients mind at ease.
By brokers raising these topics first and giving the answers to the questions that first-time buyers really want to know will help their clients become much more confident when starting their home buying journey.
Jargon often used by financial professionals can leave first-time buyers feeling excluded, and too embarrassed to ask questions, leaving them the fear of seeming uneducated on the topic. Which could be why four in 10 adults surveyed said they decided to talk to their parents and 44% relied on the internet rather than going to an expert.
Jargon is great for creating efficiency while talking to those in the industry however when used with a person new to that terminology, it becomes daunting and confusing. Taking the extra time to bust the jargon and explain the meanings to first-time buyers will make a world of difference to their journey.
The research, carried out via OnePoll on behalf of Skipton Building Society, found many went to great lengths to understand what was happening, with 68% spending hours researching the process.
For those who sought help, 44% went to professionals such as mortgage brokers or advisors, while the same percentage relied on the internet.
Perhaps unsurprisingly, almost eight in 10 adults polled wished the home buying process was simpler, and just under half are put off moving again due to how complicated and confusing they found things first time around.
Rachael Hunnisett, national accounts & new build lead at Skipton Building Society, said: “Professional, personal mortgage advice plays a key role in guiding first-time buyers through their journey to homeownership. Buying a first home can be a daunting and stressful process, all-be-it an exciting one too!”
“As mortgage professionals we have a duty to make sure our customers clearly understand each step of the process. As a Lender, at Skipton we aim to support this by equipping brokers with the tools we have available to cut through the jargon and keep things simple, that’s why we have produced this handy guide and partnered with Babble to help eliminate confusion, and give first-time buyers the confidence to speak about the house buying process”
Iona Bain, money expert and author, said: “Getting on the property ladder can feel complex and overwhelming at the best of times. But when the economic outlook is so uncertain, first-time buyers will be armed with more questions than ever before.
“Thankfully Skipton Building Society has answered the top 20 questions first-time buyers want answers to, which should make the whole process smoother, less stressful and a whole lot easier.”
The study found first-time buyers also had questions like ‘how long should I fix my mortgage rate for?’ and ‘what is indemnity insurance for?’.
More generally, people wanted to know why property buying can be such a hassle, when they had to pay their mortgage – and most importantly, when they would get their keys.
To support first-time buyers Skipton has partnered with language app Babbel to help people learn the most confusing home buying terms and make the property process simpler. Brokers can visit or direct their clients https://www.skipton.co.uk/life-and-money/mortgage-jargon-buster for more information and tips on how to make learning financial lingo easier.
THE QUESTIONS FIRST-TIME BUYERS WANT ANSWERS TO
- What surveys do I need?
- What is conveyancing?
- What are the searches that solicitors carry out and what do they mean?
- How much can I afford?
- How do I choose a solicitor?
- Do I have to do a survey on the property?
- How long should I fix my mortgage rate for e.g. is 3 or 5 years best?
- How much notice will I be given about the moving date?
- Why is property buying so much hassle?
- How do I know what’s the best mortgage for me?
- What is indemnity insurance and why do you need it?
- What’s the difference between a mortgage Decision in Principal and a mortgage offer?
- What is stamp duty?
- What does it mean for me if the vendor doesn’t have correct paperwork for the home? (for example, boiler certificates are out of date)
- How much deposit will I need?
- How soon after paying do you get the keys?
- Should I offer less than the advertised home price?
- What role does a solicitor play?
- What’s the difference between fixed rate and variable mortgage?
- What insurance should I take out now I am a homeowner?
- How much will everything else cost me each month, such as bills
- Do I have to pay stamp duty?
- How much will mortgage payments be?
- What’s the difference between leasehold and freehold?
- How do you get a mortgage?
- What are management fees?
- When do you sort out a mortgage?
- How long does my mortgage offer last for?
- Why do solicitors charge me to print things?
- When do I need to pay everyone for the work?
- What do solicitors do all day?
- Will it affect my mortgage repayments if I complete mid-month, is it best to complete at the end of the month?
- What does the estate agent do?
- Do I need to pay for brokers on top of everything else?
- Is there a limit to how long a ‘chain’ can be?
- Can I pull out of the purchase at any point?
- Do I pay the deposit all in one go?
- What’s a mortgage broker?
- Do I need to pay everything in one go or do I pay the 10% deposit first and the rest later?
- When do I pay my mortgage?
