Seven in ten (71%) say they are either completely unaware of the other financial products that need to be considered to accompany a mortgage or would at least need advice.
But with additional research showing that in practice, 78% of borrowers take out one or more insurance or investment products alongside their mortgage (1.4 products on average)**, IFA Promotion is urging people to seek independent financial advice from a mortgage IFA when buying their homes. Likewise, it is warning that whereas independent mortgage advisers may offer independent advice on mortgages, they may offer ‘tied’ advice on affiliated products. Only a mortgage IFA can offer truly impartial financial advice across all associated mortgage products that are part of the homebuying process.
Karen Barrett of IFA Promotion commented: "Buying a home and arranging a mortgage is often a daunting experience, especially for first time buyers, and the fact that so many people do not fully understand the full complexity of associated financial matters comes as little surprise. However, for many, it is also the single largest financial commitment they will ever make, and consequently one of the key triggers to consider other financial products. We are therefore warning that people apply caution when seeking expert advice in this area. Only mortgage IFAs are obliged to offer the gold standard: whole-of-market independent advice across the full range of financial products."
