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THURSDAY 27TH OCTOBER 2005
 MORTGAGE JARGON BAFFLES FIRST TIME BUYERS

Many mortgage holders and first-time buyers have difficulty understanding baffling jargon about the world of mortgages, according to a recent survey.

The research revealed that more than half (56%) of first time buyers and mortgage-holders did not know what APR stood for.

In addition, 52% of nearly 800 mortgage holders interviewed were unaware what APR they were paying, according to the Financial Services Authority (FSA).

The consumer research commissioned by the FSA on what UK mortgage holders and first time buyers knew and felt about buying a mortgage showed:

* 56% of first time buyers and mortgage-holders did not know what APR (annual percentage rate) stood for

* 52% of mortgage-holders did not know what their current APR was

* 36% of mortgage-holders did not understand at least half of their mortgage product literature

* 65% of first time buyers felt daunted by buying a mortgage

* 76% of first time buyers would like access to more impartial information about mortgages

To help consumers understand better the FSA has launched a new website for consumers providing impartial, jargon-free information about the world of mortgages. The website www.mortgageslaidbare.info, brings together for the first time new and existing FSA mortgage tools and resources.

The tools include budget calculators that will help consumers work out how much they can afford to borrow and how much a mortgage will cost them each month; mortgage tables that give consumers a list of what mortgages are available on the market to help them shop around and a 'Firm Check' service so consumers can check that the firm they are dealing with is authorised.


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