The home-buying process can be challenging for many first-time buyers. This is especially the case when they’re not even aware of what can impact their mortgage application. Looking to educate consumers and take them through the process step-by-step, the Yorkshire Building Society, the UK building society and mortgage provider, is launching a new tool to help homeowners.
According to research from Opinium, the insights agency, only 18 per cent of people feel knowledgeable about the topic of a mortgage. Additionally, research from the Yorkshire Building Society, which polled 2,000 people, has found that 14 per cent of consumers don’t know what financial factors are important when applying for a mortgage.
When asked about what would impact someone’s ability to get a mortgage, only 45 per cent of respondents acknowledged a good credit score’s importance. Only a third (34 per cent) thought being able to repay debts mattered.
Clearly, customers need more education. As such, the Yorkshire Building Society has partnered with financial education provider, Doshi.
The result of this partnership will offer would-be homeowners an online learning programme designed to guide them through the process of applying for a mortgage and buying a home. This new tool can be accessed via the mortgage section of the mutual’s website and is aimed at those interested in taking their first step on the property ladder.
Helping first-time buyers
Geddy Meguyer, senior manager for digital mortgages and enabling services, Yorkshire Building Society
Geddy Meguyer, senior manager for digital mortgages and enabling services, Yorkshire Building Society said: “Buying a house is often the largest financial commitment people will make in their lifetime, but as our research suggests, knowledge around mortgages and the process of home-buying is low.
“We know from customer research that people feel more confident in their decision-making when they are informed and know what to expect. Consequently, this is why we are trialling this new learning tool. It is aimed at helping first-time buyers understand more about the home-buying process.
“We’re committed to exploring new ways to solve customers’ pain points, so we’ll be evaluating people’s experience with the tool as time goes on to make sure it is as helpful as possible for potential home-buyers.”
Daniel Rose, CEO of Doshi
Daniel Rose, CEO of Doshi added, “Partnering with Yorkshire Building Society to empower aspiring homeowners is a significant step toward making homeownership more accessible.
“Our programme demystifies the mortgage process, providing engaging, bite-sized guidance every step of the way. We are excited to see the positive impact on first-time buyers.”
Power through education
The Doshi tool takes aspiring homeowners through the home-buying journey, from understanding home ownership to preparing to buy; financing a home; aspects of the home-buying process and then maintaining their home when they’ve achieved it.
Users also learn about key topics, such as the difference between freehold and leaseholds, different types of mortgages and the application process, terms and acronyms, what to look for when buying a house and a timeline of the home-buying process.
Research the Yorkshire Building Society conducted in 2023 for its Home Truths report, showed that 78 per cent of potential first-time buyers believe homeownership is becoming an elite privilege. As a result, the Yorkshire Building Society has committed to providing as many people as possible with the chance of a place to call home. The partnership with Doshi is the latest achievement that aligns with this goal.
Other accomplishments include the launch of its £5,000 Deposit Mortgage, allowing first-timers to overcome their biggest challenge – saving up a deposit. This product allows them to buy a property worth up to £500,000 with a deposit of £5,000, rather than the more typical down payment of five per cent.
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