78% of borrowers take out other financial products at same time
1.6 million products sold alongside mortgages each year
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More than three quarters (78%) of mortgage borrowers take out at least one protection or investment product at the same time, according to new research from IFA Promotion, which is urging borrowers to check their adviser is independent for other financial products as well as mortgages.
The research reveals that UK borrowers take out an average 1.3 additional financial products on top of their mortgage. This means that, with 6.3 million new mortgages** sold over the last five years, a staggering 1.6 million financial products are sold alongside mortgages every year.
David Elms, Chief Executive of IFA Promotion, commented, “Arranging a mortgage is the single biggest financial commitment many of us make, and the biggest trigger to consider other financial products. But even if your adviser offers independent mortgage advice, they may not do the same for other product areas.”
Over half (52%) of borrowers take out life insurance with their mortgage, and 31% take another form of financial protection. 28% of borrowers took an investment product with their mortgage in the last five years, down from 69% of those who got their mortgage a decade or more ago.
The research also shows that:
39% of all people will take out one product at the same time as their mortgage, and just under a third will take out two products (30%). One in ten (9%) will take out three or more products.
The under-30s take out least additional products, while 30-50 year olds buy most
Elms continued, “Independent mortgage advice is vital to ensure borrowers get the best value product for their needs. Equally, the difference between the most suitable protection or investment product on the market and a more mediocre recommendation can be massive, since many of these additional products will be held for the term of the mortgage. We are urging borrowers to see a mortgage IFA who will offer the gold standard of advice across all of their product needs.’
