Mortgages an afterthought for most first-time buyers

 

  70% of first-time buyers say independent financial advice is important for their mortgage, but just 18% see an IFA

 

  Find the right local Mortgage IFA for you at www.impartial.co.uk

 

When it comes to realising their home-buying dreams, most first-time buyers are swept away with the thought of their new property and don’t consider mortgage advice a high priority, according to a study* from IFA Promotion.  When taking out their first mortgage, only 18% of people visited an IFA for advice, compared to 43% who visited a bank or building society.

 

This is despite the fact that seven out of ten (70%) non-home-owning British adults believe it is important to receive independent financial advice when arranging a mortgage.  Nearly two thirds (64%) say it is also important to receive independent financial advice when arranging protection or investment products alongside a mortgage, which happens in four out of five (78%**) mortgage cases. 

 

Less than a fifth (18%) of non-homeowners claim to have a clear understanding of the mortgage market, making it more worrying still that they do not act on their belief in independent financial advice.  Only a ‘Mortgage IFA’ offers independent advice on all of the financial products relevant to buying a home. 

 

It seems more experienced home-owners do recognise the importance of independent financial advice however as the number of people who visit an IFA when it comes to re-mortgaging grows substantially to 30%.  

 

Karen Barrett of IFA Promotion commented: “It’s perhaps understandable that first time buyers focus more on securing their first home than the best value homeloan and other financial products than more experienced homeowners.  But arguably it is the first time buyer who needs the benefit of independent financial advice most, so we urge first timers to make their mortgage choice a priority and ensure they visit an IFA for advice.” 

 

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*IFA Promotion commissioned a YouGov survey of 3,143 GB homeowners and 1,539 GB non-homeowners, July 2005

 

** IFA Promotion commissioned a YouGov survey of 2,120 GB adults, October 2004. 78% of mortgage borrowers purchased at least one (on average 1.4) associated protection or investment products alongside their mortgage

 

Karen Barrett                                                Chloe Mann / Holly Godden

Marketing Director                                        Lansons Communications

IFA Promotion                                               020 7294 3681 / 0207 294 3674

020 7833 3131                                            

 

 

IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public.  It represents around 9,000 firms of independent financial advisers across the UK and is sponsored by 32 leading financial institutions. In the past 12 months, over 530,000 consumers and businesses used IFA Promotion to find local independent financial advice.

 

IFA Promotion believes Independent financial advice should be:

  Affordable.  The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.

  Convenient.  IFAs should be available in the location of the consumer’s choice, wherever they live in the UK.

  Transparent.  It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.