First-time buyers (FTB) stand accused of being extremely naive about the intricacies and even obvious elements involved with the home buying and selling process.
According to over 2,000 non-home owning respondents, questioned by lenders Santander, 57% of prospective FTBs believe they will be able to borrow up to ten times the single or household income.
The research preempts free in-branch educational events run by Santander across the UK. Given the fact that 8% believe stamp duty land tax is a fee for registering a property with the postal service, many buyers are in need of further property education.
The misconceptions span every facet of the buying and selling process from the mortgage application through to exchange.
76% were of the opinion that Loan to Value (LTV) actually stood for ‘Long Term Value’ and referred to the expected property value increase over time.
Many were also confused by the exchange process believing that it is the moment the keys are passed from buyer to seller.
71% thought honesty was a legal requirement with sellers obliged to point out any and all property faults. Almost half (43%) were of the opinion that housing fall throughs, caused by a break in the chain, would result in costs already paid to be refunded in full.
A number of other knowledge gaps highlights a clear need for stakeholders in the buying and selling process to help inform buyers to a greater extent.
Miguel Sard, Managing Director, Santander Mortgages, said:
“The home buying process can sometimes seem very complicated and old fashioned, with lots of confusing jargon to get your head around.
“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 home ownership 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.”
Georgia ‘Toff’ Toffolo, TV personality, said:
“Buying your first home is the most exciting thing, it’s so easy to get swept up in the thrill of having something that is ‘yours’.
“When I was buying my first home, I wish I’d known more about the whole process. I would have nightmares that moving day would never come, and I’d be living amongst cardboard boxes forever – I thought I’d be drawing a Christmas tree and decorations on corrugated cardboard rather than decorating a lovely a new home!
“The new events from Santander are a great way to find out all you need to know before you’re thrown into it headfirst.”
Are FTBs offered enough guidance before they purchase their first home?
3 Responses
Unfortunately, most have no interest in the process and are so stressed by the whole process, brought on by being constantly hassled and hustled, they don’t read information sent. Expectations on time table are not managed and for the most part, the advisers, simply blame everyone else for delay.
The Government has produced this new guide:
https://www.gov.uk/government/publications/how-to-buy-a-home
Whyever should solicitors assume any client’s prior knowledge of conveyancing? FTBs are no different. It is a solicitor’s job to explain simply- in terms that a client can understand, i.e. at a level pitched apropriate to that specific client’s level- the complexities of land law. This is true for any specialist discipline. If a solicitor consults a lumber or a lumberjack, one would expect the person consulted to expalin the complexities in just the same method.