Yorkshire Building Society is tackling the lack of knowledge around applying for a mortgage and buying a home with the launch of an online learning programme.
It has created an instrument, available on the mortgage section of its websitethat guides people interested in taking their first step in the field through the process.
The mortgage lender developed the tool in collaboration with Doshi, a financial education provider, because a survey found that fewer than one in five people (18%) felt well informed about mortgages. Moreover, more than one in ten (14%) did not know which financial factors are important when applying for a mortgage.
The recent poll of 2,000 people found that 45% agreed that a good credit score was important when applying for a mortgage, and only a third thought that being able to repay debts mattered.
Geddy Meguyer, senior manager for digital mortgages and support services, said: “Buying a home is often the largest financial commitment people will make in their lives, but as our research shows, knowledge about mortgages and the process of buying a house low.
“We know from customer research that people have more confidence in their decision-making when they are informed and know what to expect. That is why we are testing this new learning tool, intended to help first-time buyers gain more insight into buying a house. process.
“We want to explore new ways to solve customer pain points, so we’ll evaluate people’s experiences with the tool over time to ensure it’s as useful as possible for potential homebuyers.”
The Doshi tool guides aspiring homeowners through the process of purchasing a home
- understanding homeownership to preparing to buy
- financing a home
- aspects of the home purchasing process
- maintaining their home once they reach it.
Users also learn about important topics such as the difference between self-ownership and ground lease, different types of mortgages and the application process, terms and acronyms, what to look for when buying a home, and a timeline of the home buying process. It will be available for free to both YBS customers and non-customers.