First-time buyers hold many misconceptions and knowledge gaps
A new study from Santander Mortgages has revealed striking misconceptions and knowledge gaps among aspiring first-time buyers as they prepare to make their most major purchase.
The survey of 2,000 non-homeowners suggests first-time buyers need some help to be better informed about the homebuying process.
Major misconceptions
More than three quarters (76 per cent) of respondents thought ‘LTV’ stands for ‘Long Term Value’ and related to a projected increase in property value.
More than 70 per cent thought the seller is obliged to tell buyers about any problems with the property during a viewing.
More than three fifths of respondents believed mortgage interest rates are lower in parts of the UK where house prices are cheaper.
But 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. On average, new buyers are overestimating the typical fees involved for solicitors, surveys, removals and land registration. And while 58 per cent 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 the purchase.
Propertymark Protected
Given the amount of uncertainty among new buyers that this data suggests, it is even more important to reassure buyers that by using a NAEA Propertymark estate agent, they are guaranteed to be consulting with a professional agent who can give up-to-date advice and guidance.
Propertymark consumer information
Propertymark has a collection of home buying advice and guides, explaining everything from first tine buyer schemes and getting on the property ladder, to choosing a conveyancer, shared ownership and more.
Kindly shared by NAEA Propertymark
