It is hardly a secret that young people face significant barriers on their way to purchasing their first home. Quite apart from prohibitive house prices and stringent affordability criteria, a lack of understanding of how the mortgage process works is also holding them back.
According to a survey by Paymentshield, 52% of adults aged 18–34 say they have a fairly or very bad understanding of the whole mortgage process, while a similar number (53%) also said they had a fairly or very bad understanding of different types of insurance and when they might need them.
The language used to explain financial products and services may be to blame here. A third (33%) and just over a third (37%) of 25 to 34-year-olds and 18 to 24-year-olds, respectively, said they were not very or not at all confident that they’d understand the relevant terminology.
These results suggest that many young adults do not have the knowledge and understanding they need to make sensible and informed decisions about the best mortgage and protection products for their circumstances.
Here to advise
Not understanding how mortgages work is nothing to be ashamed of – nobody knows everything! That’s why we’re here. We can guide you through the process from start to finish, explaining everything you need to know in plain English – so please get in touch, whatever your age!