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Mortgage jargon confuses younger generations

Buying a home has become a distant dream for many young people, with prohibitive house prices and high living costs making saving difficult. However, a lack of understanding of mortgage terminology and processes may also be holding them back.

A survey9 * has found that 52% of 18 to 34-year-olds have a fairly or very bad understanding of how mortgages work, while 53% said the same about the various types of insurance available and when they might be needed.

A whole new language

From fixed rate to SVR, the language used to describe mortgage products and processes can be very confusing for the uninitiated. No wonder that 33% of 25 to 34-year-olds and 37% of 18 to 24-yearolds stated that they were not very or not at all confident that they would be able to understand mortgage-related terminology. All in all, the survey findings suggest that many young adults lack the understanding they need to make informed and confident decisions about the mortgage and insurance products that might best suit their needs.

Here to help

There’s nothing wrong with being a bit confused about mortgages – everybody starts somewhere! We’re on hand to advise you about the most suitable options for you – in plain English – so you can make mortgage decisions with confidence (whatever your age).

*PaymentShield, 2021

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