Homeowners shun IFAs

Less than one in five homeowners seeks mortgage advice from an independent financial advisor (IFA), according to new research.

IFA Promotion found that while 70 per cent of non-homeowners thought that it was important to receive independent financial advice when organising a mortgage, only 43 per cent of homeowners actually did so.

Nearly two thirds of non homeowners thought that independent advice was also useful when considering the purchase of additional financial products associated with a mortgage, such as insurance.

However, when seeking advice, only 8 per cent of people would see an IFA as opposed to a mortgage broker or bank.

Karen Barrett of IFA Promotion said: “More than three quarters of mortgage borrowers take out at least one protection or investment product alongside their mortgage. However, our research shows that whilst most people instinctively know that independent advice is important for these purchases too, this is not what they are taking.

“Only a mortgage IFA offers ‘gold standard’ independent advice across all related product areas.”

The survey found that IFAs helped up to 30 per cent of homeowners find a re-mortgage deal.

© Adfero Ltd

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