Consumers snubbing IFAs
Despite 70 per cent of non-homeowners questioned by IFAP saying it was important to seek independent financial advice when buying their first property, merely 32 per cent actually consulted an IFA or mortgage broker.
Karen Barrett, marketing director at IFA Promotion, commented: “It’s perhaps understandable that FTBs focus more on securing their first home than the best value homeloan and other financial products than more experienced homeowners. But it’s the FTB who needs the benefit of independent financial advice most, so we urge FTBs to make their mortgage choice a priority and ensure they visit an IFA.”
Of more concern is that only 18 per cent of respondents said they had a clear understanding of the mortgage market, meaning the majority are in danger of not getting the best deal.
With FTBs struggling to get on the property ladder, IFAP has highlighted the importance of getting independent advice to ensure they are safeguarding both their new home and their future financial security.
While 43 per cent of FTBs approached a bank or building society and 13 per cent estate agents, 10 per cent of people got advice from friends and family or in some cases got no advice at all.
Sole practitioner Tony Catt said: “When people want a mortgage they look down the high-street and see the banks but don’t see the IFA in their small office on the second floor. IFAs don’t start on a level playing field here and that’s the problem.”