First time buyers failing to understand finance

First-time buyers do not understand all the financial complexities of owning a mortgage claims a new survey by Ifa Promotion.

Seventy per cent of all homeowners said that they were completely unaware of other products that go with a mortgage, or would need advice on them.

Many young buyers admitted that they needed help to effectively compare mortgage rate deals beyond just looking at a headline rate.

The buyers polled said that they were not letting this prevent them from taking additional mortgage products, with 78 per cent taking one or more insurance or investment product to go with their mortgage.

“Buying a home and arranging a mortgage is often a daunting experience, especially for first-time buyers, and the fact that so many people do not fully understand the full complexity of associated financial matters comes as little surprise,” said Karen Barrett of IFA Promotion.

“However, for many, it is also the single largest financial commitment they will ever make, and consequently one of the key triggers to consider other financial products.

“We are therefore warning that people apply caution when seeking expert advice in this area.”

© Adfero Ltd

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