Prospective first time buyers oblivious to the financial reality of the homebuying process
PROSPECTIVE FIRST TIME BUYERS OBLIVIOUS TO FINANCIAL REALITY OF THE HOMEBUYING PROCESS
Find the right local mortgage IFA for you at www.impartial.co.uk
With the May bank holiday approaching, scores of would-be first time property buyers will be planning a long weekend scouring the streets for a new home. However, according to a study* from IFA Promotion, the organisation promoting the benefits of independent financial advice, the majority of potential first time buyers face a knowledge gap on the financial realities of property purchase. 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 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”.
Consumers can obtain a free copy of IFA Promotion’s mortgage guide, together with details of local mortgage IFAs by visiting http://www.impartial.co.uk/find-a-mortgage-ifa/guides/. They can also call IFA Promotion’s consumer hotline on 0800 085 3250
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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
For further information, please contact:
Karen Barrett Chloe Mann/Holly Godden
Marketing Director Lansons Communications
IFA Promotion 020 7294 3681/ 020 7294 3674
020 7833 3131
For expert comment or case studies from over 100 media-friendly mortgage IFAs, journalists should call IFA Promotion’s Media
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
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
Transparent. It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.
2. Independent Financial
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