When it comes to realising their home-buying dreams, most borrowers ignore what they believe is best for them, according to research from IFA Promotion. Seven out of ten (70 per cent) non-home owning British adults believe it is important to receive independent financial advice when arranging a mortgage, and nearly two thirds (64 per cent) say it is important to receive independent financial advice when arranging protection or investment products alongside a mortgage.
Despite recent mortgage regulation and the creation of ‘independent mortgage advisers’, only a ‘Mortgage IFA’ offers independent advice across all of these product areas relevant to buying a home. Yet, in practice, just 18 per cent of today’s homeowners approached an IFA for mortgage advice, and a mere 8 per cent of potential homeowners say they would head first for an IFA.
Other key findings of IFA Promotion’s study:
41 per cent of potential homeowners said they would approach their bank or building society for mortgage advice and 43 per cent of current homeowners actually did
Only 18 per cent of non-homeowners claimed to have a clear understanding of the mortgage market
30 per cent of homeowners who have remortgaged did so with the help of an IFA
Karen Barrett of IFA Promotion commented: Karen Barrett of IFA Promotion commented: “More than three quarters** of mortgage borrowers take out at least one protection or investment product alongside their mortgage. However, our research shows that whilst most people instinctively know that independent advice is important for these purchases too, in practice, this is not what they are taking. Only a Mortgage IFA offers ‘gold standard’ independent advice across all related product areas.”
