Two-thirds of first-time buyers do not understand what Stamp Duty Land Tax is.
And half of all Britons are baffled by other home-buying terminology such as “offset mortgage”, “arrangement fee” and “standard variable rate”.
New research by online bank First Direct among over 2,000 consumers found that one in four do not know who pays Stamp Duty on property, while 5% think it is a tax based on the property’s size.
The bank has now put some videos together to explain the mortgage process in everyday language.
The move follows the launch of the new mortgage tariff, by the Council of Mortgage Lenders and Which?, aimed at demystifying the way lenders communicate their fees.
Comments (2)
No doubt that the online agents that the government are so keen to endorse will offer their help to clarify matters!!
Just goes to show people do not understand why you would need to be taxed to buy a home!