A quarter of first time buyers, who have bought a home in the last 12 months, opted for the first mortgage deal they found, instead of comparing rates to find the cheapest option. The poll also revealed that a third put an offer on a house before knowing they could afford it, only to later be told they couldn’t.
Many first time buyers may be confused about the best route to go down when purchasing their first property, according to research by the largest discount website in the UK. A study has revealed that a quarter of first time buyers in the last year opted for the very first mortgage they came across, without comparing rates.
www.MyVoucherCodes.co.uk carried out the study as part of ongoing research into the financial circumstances and spending habits of people around the UK. 1,992 UK adults took part in the study, each of whom had become a first time buyer and secured a mortgage within the last 12 months.
When asked, ‘How many mortgage rates did you compare before committing to one for the first property you bought?’ almost a quarter, 24 per cent, admitted they had just gone for the first mortgage deal they had found, without comparing it against other rates. What’s more, the majority of these, 62 per cent, went with their existing bank for the mortgage in question.
Any respondents who admitted to going with the first mortgage they’d found was asked why this had been the case, to which the most common answers were as follows:
- Thought it couldn’t be beaten – 23 per cent
- Couldn’t be bothered to look elsewhere – 21 per cent
- Wanted to buy quickly -13 per cent
- Didn’t occur to me to look elsewhere – 11 per cent
Of those taking part in the poll, 33 per cent admitted that they’d ended up putting in an offer on a property before knowing whether or not they could actually afford it, only to be later told that they couldn’t get a mortgage for that particular home.
85 per cent of the respondents taking part admitted that, as first time buyers, they’d found the whole process of buying a home ‘confusing’; with a further 61 per cent saying that they felt there wasn’t enough help or guidance given to first time buyers.
Mark Pearson, chairman of MyVoucherCodes.co.uk, said the following about the findings:
“Buying your first home can definitely be confusing and I definitely sympathise with all the first time buyers out there. Some mortgage advisors offer really useful advice and some don’t even charge for their services, so I would recommend that everyone looks out for one before buying.
“It’s crucial to compare mortgage deals, because what you think might be a great deal might actually be pretty extortionate compared to another provider’s offer. Shopping around is key, so that you know you won’t end up paying over the odds.”
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