New research has found that some of the "jargon" used in the mortgage market is confusing for first-time buyers.
Phrases such as Key Facts Illustration (KFI) are causing difficulty for people looking to get on the property ladder, a new study has found.
Halifax revealed that just a third of first-time buyers knew what KFI stood for. KFI is an important concept in terms of mortgages, as it binds lenders to setting out their mortgage details in exactly the same format, in an effort to assist consumers in comparing products.
Nearly a quarter of first-timers suggested the acronym meant Knowledge Facts Information, while Key Facts Instrument and Knowledge for Improvement were other suggestions.
Falling house prices have left homes more affordable for first-time buyers than they have been in some time, meaning it is important they understand the market, according to Halifax.
"Understanding mortgage jargon can be difficult for many first-time buyers who are new to the housing market," said Jaedon Green, head of mortgage development. "Our experience shows they need a combination of advice, expert knowledge and mortgage deals which help make the first steps on the property ladder easier."
Respondents to the survey performed better with other terms, including 81 percent correctly identifying "completion date" as the day that the buyer becomes the legal owner. However, the ratio was higher in Scotland (87 percent) - despite the term being labelled "settlement" in Scots law.
