First-time buyers remain baffled by mortgage jargon - such as negative equity, stamp duty and conveyancing. <br /><br />As a result, 60 per cent are worried it’s slowing the purchase down, and 52 per cent fear they could miss out on a better deal because they can’t get to grips with the terminology. <br /><br />The study of 1,000 adults in the process of getting on the property ladder also found terms like annual percentage rate, underwriting and decision in principle are puzzling prospective buyers. <br /><br />But 35 per cent of these also think mortgage product names make them difficult to understand what they actually are. <br /><br />And many don't know if the likes of Shared Ownership or Joint Borrower, Sole Proprietor mortgages will actually suit their needs. <br /><br />While 39 per cent would even like to see mortgage products renamed so that they are easier to understand. <br /><br />The research was commissioned by Skipton Building Society [https://www.skipton.co.uk/mortgages/first-time-buyers/mortgage-help], as part of its campaign to simplify the homebuying journey to enable more first-time buyers to step onto the property ladder. <br /><br />Jen Lloyd, head of mortgage products at the building society, said: “In an increasingly complex landscape of mortgage terms and product names, first-time buyers are finding themselves navigating uncharted waters. <br /><br />When it comes to demystifying the complex jargon, 34 per cent of those polled are seeking clarity from their parents rather than the mortgage experts themselves. <br /><br />With another 35 per cent choosing to use the internet, but not banking sites, to try and increase their understanding. <br /><br />Throughout the process, these bewildered buyers have found applying for a mortgage, dealing with their solicitor and finding a mortgage the most confusing. <br /><br />Consequently, 77 per cent of these say this has added to their stress levels. <br /><br />It also emerged 79 per cent of all first-time buyers feel the homebuying process would run a lot smoother if everyone just spoke in layman's terms. <br /><br />And 41 per cent have had to bluntly ask someone to speak in more simplified terms during their journey. <br /><br />Due to the complexities faced when buying a home, 46 per cent wish they had been taught more at school about it so they would be more prepared now it is finally upon them. <br /><br />The research, conducted via OnePoll.com, also found 24 per cent of those currently trying to buy their first home are receiving financial support. <br /><br />Of these, 83 per cent feel it is ‘impossible’ to get on the property ladder without a cash injection from elsewhere. <br /><br />Nearly six in 10 (58 per cent) of these have been given a lump sum towards their deposit, while 32 per cent have been offered help with moving costs. <br /><br />And 23 per cent of these found the Joint Borrower, Sole Proprietor mortgage to be the best option for them for getting onto the property ladder.
