First-time buyers are the most likely to be left baffled due to their lack of knowledge.
Around a third of those surveyed knew that LTV meant loan to value and referred to the ratio between the size of the loan they wished to borrow and the value of the house they wanted to buy.
One in ten did not know that APR stands for annual percentage rate.
Some 14% of people did not know that negative equity meant when the value of the mortgage, which was outstanding on the property, was more than the market value of the property.
A quarter did not know that they became the owner of the property once the sale was completed, with some believing it was when the offer is accepted, or when they had exchanged contracts.
Almost half knew that it was obligatory to survey the house they were looking to buy if they needed a mortgage.
As a result of the findings Nationwide has released a video podcast featuring money experts Alvin Hall and Michelle Slade discussing whether jargon makes it difficult for people to buy their first home.
Ian Andrew, managing director at Nationwide Intermediary Sales, said: “We are all guilty of using jargon when speaking with colleagues but sometimes we forget that clients may have a limited knowledge of the mortgage terms we take for granted.
“First-time buyers may be being put off taking their first steps onto the property ladder as they feel daunted by a world of new terms they don’t understand and it is up to lenders and brokers alike to help them through the process.
“If brokers offer an added value service and take the time to explain terminology to borrowers then they are more likely to come back to them in the future when they come to remortgage.”
