A study from Santander Mortgages has blown the cover on first time buyers, suggesting they know almost nothing and research very little before purchasing a property.
The research involved 2,000 non-homeowners and discovered that a significant proportion of FTBs believed, amongst other things:
- sellers were obliged to reveal problems in their properties during viewings;
- buyers are obliged to purchase when a seller accepts an offer;
- estate agents pay for the survey on a property;
- stamp duty is free if a home is registered with the postal service;
- fees are refunded in full when a chain collapses;
- exchange is the exchanging of keys on moving day;
- LTV meant long term value and refers to predicted capital appreciation;
- mortgage rates are lower in parts of the UK where house prices are lower;
- interest on a mortgage remains the same over its entire term.
However, the same survey revealed that typical new buyers significantly overestimate the fees involved for solicitors, surveys, removals and land registration.
Santander is running a series of events in its 614 branches across the UK to explain further how house buying works and how to obtain a mortgage.