Two thirds of first-time buyers (66%) didn’t know what stamp duty is and a similar proportion (67%) of Brits didn’t know that ERC means early repayment charge.
Despite the results nearly half (46%) of brits claimed they understand homebuyer terminology.
Tracie Pearce, head of mortgages at first direct, said: “We want to make buying a property as simple as possible for our customers and our videos help to explain the mortgage process in everyday language which we hope will guide, reassure and ease our customers through this process.”
first direct has produced a series of videos using comedy sketches to help people get to grips with terminology when buying a house.
On Monday the week the Council of Mortgage Lenders and Which? launched a tariff to standardise the way lenders communicate their fees to help consumers compare deals.
