Check your adviser is independent for more than just mortgages, warns IFA Promotion

CHECK YOUR ADVISER IS INDEPENDENT FOR MORE

THAN JUST MORTGAGES, WARNS IFA PROMOTION

 

  • 78% of borrowers take out other financial products at same time
  • 1.6 million products sold alongside mortgages each year
  • Free mortgage guide on 0800 085 3250 or www.unbiased.co.uk

 

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.

 

Borrowers can obtain details of local Mortgage IFAs specialising in a range of areas by visiting www.unbiased.co.uk or calling 0800 085 3250.  They can also request or download a free copy of IFA Promotions mortgage guide.

     -ends-

 

* IFA Promotion commissioned an online YouGov survey of 2,120 GB adults, October 2004, results were rim-weighted to represent the adult population.

** Bank of England lending statistics

 

For expert comment or case studies from over 200 media-friendly IFAs, many of whom specialise in independent mortgage advice, journalists should call IFA Promotions Media Services hotline on 020 7294 3682 or search online in Media Services at www.unbiased.co.uk

 

1.  Independent Financial Adviser Promotion

 

IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public.  It represents over 10,000 firms of independent financial advisers across the UK and is sponsored by 27 leading financial institutions. In 2003, over 330,000 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 consumers 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.

 

2.      Independent Financial Adviser Promotions sponsors

 

Abbey

Mortgage Express

AXA

National Savings & Investments

Bright Grey

New Star Investment Funds

BUPA

Norwich Union Life

Canada Life

Old Mutual Asset Managers

Childrens Mutual

Prudential

Clerical Medical Investment Group

Scottish Equitable Plc

Friends Provident

Scottish Life

GE Life

Scottish Widows Plc

GMAC Residential Funding

Selestia

INVESCO Fund Managers Ltd

Standard Life Assurance Company

Legal & General

Skandia UK Group

Lincoln Financial Group

Webline

London Mortgage Company

Zurich Life Assurance Company

 

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