FTBs not seeking independent advice
When it comes to realising their home-buying dreams, it seems most first-time buyers are swept away with the thought of their new property and don’t consider mortgage advice a high priority.
When taking out their first mortgage, only 18 per cent of people visited an IFA for advice, compared to 43 per cent who visited a bank or building society.
This is despite the fact that 70 per cent non-home-owning British adults believe it is important to receive independent financial advice when arranging a mortgage. 64 per cent say it is also important to receive independent financial advice when arranging protection or investment products alongside a mortgage, which happens in 78 per cent of mortgage cases.
Only 18 per cent 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 per cent.
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.”