Homeowners do not Look for Independent Mortgage Advice

The majority of people looking to buy a house believe seeking independent investment and protection advice is important yet many fail to do so, a new survey claims.

Research by IFA Promotion found that seven out of ten potential buyers thought they should consult independent financial advisors to help them arrange a mortgage and nearly two-thirds said they should get impartial professional advice when sorting out protection or investment products alongside a mortgage.

But only 18 per cent of people went to an independent financial advisor (IFA) for mortgage help despite four in five admitting that they did not have a clear understanding of the mortgage market.

Only eight per cent of people said an IFA would be their first port of call. Over two fifths of potential homeowners instead chose to talk to their bank or building society.

Karen Barrett of IFA Promotion advises potential house buyers to visit an IFA to make sure they are on the right financial track.

"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, in practice, this is not what they are taking. Only a Mortgage IFA offers ‘gold standard’ independent advice across all related product areas," she added.

IFAs can also help with re-mortgaging. Almost one third of homeowners who have remortgaged their properties have sought their services