British first-time buyers struggle with mortgage jargon

Buying your first home. What an exciting time in your life! It’s the start of a new chapter, but it doesn’t come without its struggles. Getting a mortgage can be hard enough, but add in the technical jargon and it can become the first-time buyers Mount Everest. 

Data released by Aldermore highlights the fact that many first-time buyers don’t understand mortgage terminology, and could be missing out on schemes that are designed to help them.

But what terms do people struggle with and what do they actually mean?
Slightly over half of respondents weren’t aware of the ‘Help to Buy equity loan’ – this is where the government lends you up to 20% of the cost of your newly built home, interest free for the first five years, so you’ll only need a 5% deposit and a 75% mortgage to make up the rest!

Just under half didn’t understand what a ‘lifetime ISA’ was and slightly over one third didn’t know what a ‘Help-to-Buy ISA’ was. These ISAs allow first-time buyers to get a 25% government bonus on their savings for a first home, each with different rules which is why seeking professional advice is worthwhile.

35% of respondents also didn’t understand ‘shared ownership’ – where first-time buyers own a share on their home and pay rent at a reduced rate on the remaining share.

These figures suggest that many first-time-buyers could be missing out on various benefits and pathways that these schemes can provide for those wishing to enter the property market, which is why obtaining professional advice can be invaluable.

Your adviser will be able to help you understand these terms and explain the benefits of the different schemes.

If you or your loved ones want to discuss the options available to you, or talk through any of the schemes in more detail, contact us today.

Help To Buy Roadshow: Telford

 

On Saturday 1st October, we will be attending the Help To Buy Roadshow in Telford. The roadshow will be a one-stop-shop for anyone looking to buy a new property using Help To Buy, with a wide array of house builders and housing associations in attendance. H2B Telford FB

We will be offering free, independent mortgage advice to guide you through the house buying process. The roadshow is free to attend, and open between 10am and 4pm, at the Holiday Inn, TF3 4EH.

Housing Plymouth Event- 18th June 2016

We are pleased to say that we will be attending the Housing Plymouth event on the 18th June 2016 at the Royal Parade Piazza, Plymouth. The event is open between 10am and 4pm with the aim of providing a “one-stop shop” for all things housing.

We will be there throughout the day to provide free, independent advice on the variety of housing options available to you. Our experts will be able to assess your situation and provide information on the type of schemes that best suit you.

Help to Buy Show – Hatherley Manor

HtBS_flyer_A5_Spring16_GloucOn Saturday 12th March 2016 we will be attending the Help to Buy Homes Show at Hatherley Manor, Gloucester.

We will be providing face to face, free financial advice for anyone considering the Help to Buy Shared Ownership or Shared Equity schemes.

Experts from various Housing Associations will also be there to discuss the different renting options and to give information on what properties are available.

The show runs from 10am to 3pm and entry is free. Tickets can be downloaded here.