A new survey suggests that the majority of people borrowing to buy a home are not aware of the various schemes available to help them, including those created by the government.
This survey was the work of NerdWallet, a price comparison website, and it reveals widespread ignorance of the help available to homebuyers. For instance, only a mere 15% of those of working age told the survey that they thought the 95% loan-to-value (LTV) mortgage guarantee scheme set up by the government was applicable to them.
When it comes to those aged below 25, only 22% of survey respondents understood how they could benefit from the scheme when it comes to affording a first home.
Nor is it just that one scheme that buyers are unaware of, as 78% of those of working age told NerdWallet that they didn’t really know about any of the support options that can help them to buy. Furthermore, only 17% of people aged below 35 that took part knew that first-time homebuyers are not always liable for stamp duty payments.
Speaking to Financial Reporter, the expert on senior mortgages at NerdWallet, Richard Eagling, said:
“While government-backed 95% mortgages have been welcomed by many, our research suggests that its benefits may not yet be widely known among potential buyers.”
Eagling added that the scheme could assist those unable to afford large deposits.
This shows why an advisor with full CeMAP training is vital to homebuyers, and why advisors should be proactive in promoting the benefits of their knowledge and expertise.