A high proportion of first-time buyers remain uneducated about important parts of the homebuying process, a new poll has indicated.
The survey, conducted by the Royal Institute of Chartered Surveyors (RICS), suggested that 31 per cent of them were unaware that there were any differences between Help to Buy mortgages and standard 95 per cent LTV mortgages.
Paul Broadhead, who is head of mortgage policy at the Building Society Association, suggested that this is a worrying figure.
Speaking to mortgagesolutions.co.uk, he explained: “I am particularly concerned that a reasonable minority of active first-time buyers believe that they can borrow more than normal and that they are in some way protected. Neither assumption is true.
“In fact, a 95 per cent mortgage through Help to Buy mortgage guarantee is exactly the same as a standard 95 per cent mortgage. It is vital that these myths are dispelled at application to prevent the possibility of consumers misunderstanding their mortgage loan and later feeling misled.”
Broadhead said that the high level of confusion was perhaps unsurprising as two very different schemes launched this year but have both been called Help to Buy.
Independent.co.uk reports that a quarter of first-time buyers were also confused about the definitions of a “market valuation”, “agent’s appraisal” and a “property survey”.