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Two thirds of first time buyers cannot correctly identify the letters KFI with regards to mortgage advice – proof that an adviser is vital in trying to get onto the housing ladder.

According to new research by Halifax, only a third of those new to the property ladder are aware that the acronym KFI stands for Key Facts Illustration. This said, four out of five first time buyers correctly defined the term "completion date" as the day ownership of the property is transferred and you become the legal owner. Regardless, any unknown mortgage term is proof that advice is critical, because not understanding something could lead to losing out on a fortune.

Jaedon Green, head of mortgage development at Halifax says: "Understanding mortgage jargon can be difficult for many first time buyers who are new to the housing market. 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."

If you are a first-time buyer, mortgages can be daunting and a real headache. Pressure to find a deal is high, so having to negotiate a jargon-filled, fiscal minefield is the last thing you need to do. Well you don't have to do it alone. More than any other borrower, first-time buyers need professional mortgage advice.

So if you don't know your KFI from your SVR, talk to a mortgage broker today. It is very hard to even get on the housing ladder, so if you get a chance do not risk it by being in the dark about mortgages. They are complicated, life-changing financial products that need the advice of a professional.

SOURCE: Halifax, 28/01/09

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