First-time buyers ignoring mortgage advice

The vast majority of first-time buyers do not seek professional advice when taking their first steps onto the property ladder.

While seven first-time buyers in ten think independent mortgage advice is important, fewer than one in five actually go to an independent financial adviser before buying, figures from IFA Promotion reveal.

By contrast, almost twice as many experienced home-owners head to independent financial advisers when re-mortgaging grows.

"It’s perhaps understandable that first-time buyers focus more on securing their first home than the best value home loan and other financial products than more experienced homeowners," said Karen Barrett of IFA Promotion.

"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 [independent financial adviser] for advice."

While just 18 per cent of people looking to get onto the property ladder for the first time go to see an IFA, 43 per cent visit a bank or building society.

But, two in three (64 per cent) think it is important to receive independent financial advice when looking for protection or investment products to go with a mortgage, as happens in four out of five mortgages.

People who are already on the property ladder seem more prepared to seek-out independent advice, with 30 per cent visiting an IFA when re-mortgaging, IFA Promotion figures reveal.

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