Abacus Daily Debt News

First-time buyers ‘confused about jargon’

Many people who are looking to buy their first property are unaware of the meaning of the terminology used to describe mortgages, research has found.

A survey by Halifax discovered that two-thirds of first-time buyers could not define the acronym KFI, which stands for key facts illustration.

This is an obligation on lenders to outline the details of a mortgage product in the same format, to make it easier for borrowers to compare loans.

However, four out five of those questioned correctly guessed the meaning of the term ‘completion date’, which is the day ownership of property is transferred.

Jaedon Green, head of mortgage development for the firm, said that understanding such "jargon" can be difficult for borrowers.

"Our experience shows they need a combination of advice, expert knowledge and mortgage deals which help make the first steps on the property ladder easier," he commented.

Meanwhile, research from Abbey Savings has found that many first-time buyers intend to save up for a deposit this year.