New study shows buyers know little (or nothing) about…

A new study by David Wilson Homes reveals over half of Britons are unfamiliar with the stamp duty fee – and many more know little or nothing about mortgages.

The study also reveals that:

•    91% of respondents expressed unfamiliarity with higher lending charges, making it the least recognised mortgage fee among homeowners;

•    Despite it being a common practice of most banks to charge a CHAPS fee, a surprising 88% of prospective and current UK homeowners were unaware of it, potentially leaving many vulnerable to unexpected costs during the homebuying process;

•    A mortgage provider may charge a mortgage account fee, typically between £100 and £300, to set up, maintain and close your mortgage account. This can be added to your mortgage on completion, or you can pay it upfront. 85% of survey respondents were unaware of this fee;

•    If you decide to come out of a fixed, discounted, or tracker deal early, you may have to pay an early repayment charge added to the redemption figure provided by your existing mortgage provider. Again, 85% of survey respondents reported being unfamiliar with the costs of these fees;

•    Almost 80% of people were unfamiliar with the costs of own building insurance;

•    78% of people were unfamiliar with the costs of conveyancing fees, typically around £800 to £1,500;

•    75% of the survey respondents reported being unfamiliar with any Land Registry cost;

•    A mortgage reservation or application fee costs between £100 and £300. However, 73% had no idea how much this fee would set them back;

•    The arrangement fee: 67% of individuals lack awareness of these fees;

•    The mortgage provider will want a surveyor to assess the property’s value. 63% of people were unfamiliar with this;

•    Some brokers are fee-free, and some require a broker fee. Nonetheless, 62% of individuals were unsure about the associated costs;

•    54% of individuals lack awareness of the potential costs of stamp duty.