Thousands of consumers are unwittingly buying products from mortgage advisers in the mistaken belief they are buying from independent financial advisers (IFAs), according to a survey by IFA marketing body IFA Promotion (IFAP).
More than three-quarters of mortgage borrowers take out at least one protection or investment product at the same time, according to the research.
UK borrowers take out an average 1.3 additional financial products on top of their mortgage. This means that, with 6.3 million new mortgages sold over the last five years, a staggering 1.6 million financial products are sold alongside mortgages every year. IFAP is urging borrowers to check that their adviser is independent for other financial products as well as for mortgages.
David Elms, chief Executive of IFAP, says: 'Arranging a mortgage is the single biggest financial commitment many of us make, and the biggest trigger to consider other financial products. But even if your adviser offers independent mortgage advice, they may not do the same for other product areas. 'Independent mortgage advice is vital to ensure borrowers get the best value product for their needs. Equally, the difference between the most suitable protection or investment product on the market and a more mediocre recommendation can be massive, since many of these additional products will be held for the term of the mortgage. We are urging borrowers to see a mortgage IFA who will offer the gold standard of advice across all of their product needs.'
