Despite the fact that seven in ten first-time buyers believe independent financial advice is important when they are trying to find a mortgage, figures show that only 18 per cent actually consult an independent financial adviser (IFA) ahead of signing up for a mortgage.
Research by the representative body of independent financial advisers IFA Promotion reveals that 43 per cent rely on mortgage lenders for advice on which mortgage they should take out.
The need for independent financial advice increases, according to the organisation, in the 78 per cent of mortgage applications where payment protection or other investments are arranged alongside the home loan.
IFA Promotion adds that what makes first-time buyers' apparent aversion to seeking advice more worrying, is the fact that 82 per cent of non-homeowners admit they do not fully understand mortgages.
"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," comments Karen Barrett of IFA Promotion.
However, she adds that it is "arguably" the first-time buyer who is most in need of independent financial advice.
"So we urge first timers to make their mortgage choice a priority and ensure they visit an IFA for advice," Ms Barrett concludes.
Earlier this month, a study by financial website MoneyExpert and research firm Defaqto reported that mortgages are regarded as being the banking product that is the most difficult to understand – ahead of credit cards, savings accounts, loans and current accounts.
First-time buyers seem to shun advice
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First-time buyers seem to shun advice
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