Yorkshire Building Society is addressing the lack of knowledge around applying for a mortgage and buying a home with the launch of an online learning programme.
It has created a tool, available on the mortgage section of its website, which guides those people interested in taking their first step on the property through the process.
The mortgage lender has created the tool in partnership with financial education provider, Doshi, as it discovered in a survey less than one in five people (18%) felt knowledgeable about mortgages. What’s more, over one in 10 (14%) didn’t know what financial factors were important when applying for a mortgage.
The recent poll of 2,000 people showed 45% recognised a good credit score was important when they apply for a mortgage, and only a third thought being able to repay debts mattered.
Geddy Meguyer, senior manager for digital mortgages and enabling services, said: “Buying a house is often the largest financial commitment people will make in their lifetime, but as our research suggests, knowledge around mortgages and the process of home-buying is low.
“We know from customer research that people feel more confident in their decision making when they are informed and know what to expect, which is why we are trialling this new learning tool, aimed at helping first-time buyers understand more about the home-buying process.
“We’re committed to exploring new ways to solve customers’ pain points, so we’ll be evaluating people’s experience with the tool as time goes on to make sure it is as helpful as possible for potential home-buyers.”
The Doshi tool takes aspiring homeowners through the home-buying journey, from
- understanding home ownership to preparing to buy
- financing a home
- aspects of the home-buying process
- maintaining their home when they’ve achieved it.
Users also learn about key topics, such as the difference between freehold and leaseholds, different types of mortgages and the application process, terms and acronyms, what to look for when buying a house and a timeline of the home-buying process. It will be available free of charge to YBS customers and non-customers alike.
