IFAP highlights reality gap at the foot of the ladder
- 49% of non-homeowners say they can’t afford to get onto the property ladder
- 1 in 3 prospective buyers say that owning a home is a sign of success
- 1 in 5 say home ownership is out of reach.
IFA Promotion can help with mortgage advice and to find a mortgage IFA
Research by IFA Promotion*, the organisation promoting the benefits of independent financial advice, has revealed that 49% of UK adults say they can’t afford to get onto the property ladder, and of those who don’t own their own home 1 in 5 acknowledge that home ownership is out of their reach.
The research highlights something of an anomaly within the psyche of potential first time buyers; 62% of prospective buyers say owning their own home is part of a life plan, but 1 in 4 said they were unsure how they would fund the purchase of the property. Worryingly, 8 in 10 of people hoping to make their way onto the property ladder admitted to knowing “little or nothing” about mortgages, with 45% of women as opposed to 30% of men admitting to knowing nothing about mortgages. These statistics alone display the pressing need for first time buyers to seek independent financial advice.
Karen Barrett of impartial.co.uk comments: “Buying a home is one of the biggest financial decisions of your life; however our research shows a lack of knowledge about the perils of the home buying process. First time buyers are less concerned with funding the purchase, and more concerned about getting a foot onto the property ladder. A huge proportion of people know nothing, or little, about buying a property or mortgages. The need for advice is clear and arguably it is the first time buyer who would benefit from independent financial advice the most, so we urge first timers to make their mortgage choice a priority and ensure they visit an IFA for advice.”
Following mortgage regulation in 2004 IFAP has been promoting member IFAs specialising in mortgage advice via impartial.co.uk as gold standard advisers, highlighting that a mortgage IFA is the only adviser who can offer whole of market advice across all products associated with mortgages (e.g. Life insurance or investment products). IFAP research** has shown that 78% of borrowers take out one or more insurance or investment products alongside a mortgage (1.4 products on average), making this gold standard even more important.
Borrowers can find an independent financial adviser in their local area at www.impartial.co.uk and download a series of guides and fact sheets on the difficulties of getting onto the property ladder, including IFA Promotion’s mortgage guide.
For further information, please contact:
Karen Barrett | Liz Willder/Jonathon Grove |
Marketing Director | Lansons Communications |
IFA Promotion | 020 7294 3677/ 020 7294 3653 |
020 7833 3131 |
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For expert comment or case studies from over 100 media-friendly mortgage IFAs, journalists should call IFA Promotion’s Media Services hotline on 020 7294 3682 or search online in ‘Media Services’ at www.impartial.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 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 600,000 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.
2. Independent Financial Adviser Promotion’s sponsors
Aberdeen Asset Management | Lincoln Financial Group |
Abbey | Mortgage Express |
Alliance Trust | National Savings & Investments |
AXA Life | NatWest Business Banking |
Bright Grey | New Star Investment Funds |
BUPA Health Services | Norwich Union Life |
Canada Life Ltd | Prudential |
The Children’s Mutual | Scottish Equitable Plc |
Clerical Medical Investment | Scottish Life |
Defaqto | Scottish Life International |
Friends Provident | Scottish Widows Plc |
GE Life | Skandia UK Group |
GMAC Residential Funding | Standard Life Assurance Company |
INVESCO Fund Managers Ltd | UnumProvident |
Legal & General | Webline Limited |
London Mortgage Company | Zurich Intermediary Group |
*IFA Promotion commissioned a YouGov survey of 2,198 UK adults in August 2006