Nearly a third of IFAs have seen an increase in calls from clients on mortgages, as a result of cost-of-living crisis

Nearly a third (31%) of financial advisers who advise on mortgages have seen an increase in calls from clients as a result of the cost-of-living crisis, according to an Opinium poll.

Key points from the poll findings:

• Over two fifths (43%) of IFAs who advise on mortgages are concerned that their clients may struggle to make their mortgage payments
• One in five (19%) have already had clients opt to pay to get out of their deal early, to get a better fixed rate for longer
• Almost two in five (38%) are concerned about the impact of the cost-of-living crisis on their own business

Additionally, over two-fifths (43%) are concerned that their clients may struggle to make their mortgage payments as the crisis continues.

This matches with the consumer view, with over half (52%) of homeowners revealing they will struggle to afford their mortgage if every day prices continue to rise, with two in five (38%) saying they will need to make financial cuts elsewhere to be able to pay their mortgage.

Concerns around the future affordability of mortgage payments are perhaps understandable, with three in five (59%) IFAs stating that their clients who aren’t on a fixed term deal may have to pay up to £1,000 more on their mortgages, as a result of rising interest and inflation rates.

One in five (19%) IFAs said they have already had clients opt to pay a fee to get out of their current mortgage early, in order to switch to a deal with a better rate that is fixed for longer.

Almost two in five (38%) financial advisers who advise on mortgages say they are concerned about the impact of the cost-of-living crisis on their own business.

Alexa Nightingale, Head of Financial Services research at Opinium, commented:

“Given the pace at which the cost-of-living crisis continues, with inflation reaching a 40-year high, it is no surprise that IFAs are encountering clients who are concerned about keeping up with their mortgage payments.

“It’s clear that financial advisers need to continue communicating with clients, to help them through these tricky financial times and try to ease their financial concerns where possible.”

The research was carried out using Opinium’s IFA omnibus, the UK’s only dedicated research community of IFAs.

Kindly shared by Opinium

Main article photo courtesy of Pixabay