Thousands of homebuyers ‘unclear on the basics’

As millions of British consumers stretch their own finances and face debt management problems after buying a home, 40 per cent of first-time property investors cannot explain the distinction between leasehold and freehold property, AA Legal Services research shows.

Interest rate rises have made homebuying more costly, but in many cases across the country consumers are not clear on the nature of the investment they are making, the report concludes.

“Our research suggests that many homebuyers are so desperate to get onto the property ladder that they may be overlooking vitally important basic legal principals,” says James Molloy, head of AA Legal Services.

Meanwhile, a number of expert observers have suggested that debt management problems could increase for British mortgage borrowers in the coming months as the Bank of England aims to stem inflation by raising interest rates further.

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