Brits rely on friends and family to choose financial advice

The old saying ‘it’s not what you know, it’s who you know’ still rings true for Brits seeking financial advice. Almost two thirds (63%) of people will trust a person to advise them on financial matters if they come recommended by friends and family.

As part of its Not So Average Joe campaign, Birmingham Midshires, the UK’s leading specialist mortgage lender, explored how Britons make decisions on who to turn to for advice when it comes to their finances.

While personal recommendations topped the list of things that would make people trust the financial advice they are given, Government regulation also featured highly with 44 per cent of people stating that statutory regulation would give them peace of mind.

Tim Hague, managing director of mortgages at Birmingham Midshires explains the importance of getting the right advice: “There are hundreds of mortgage products on the market and not all of them are right for every individual - which is why using an adviser is vital.

While it is good to get a steer from friends or family as to where to go for financial advice, their financial needs may have been very different. A regulated mortgage intermediary, for example, will have a range of mortgages to choose from and can ensure they find one that meets the exact needs of their client.”

Financial Advice – the facts

IFAs are regulated by the Financial Services Authority and bound to act in the best interests of their clients.

IFAs must show a menu of prices before selling anything. Some may charge an hourly fee, while others will give advice free to clients and take commission from the bank or building society on the products they sell.

All qualified IFAs in Britain are required to hold a Certificate in Financial Planning as a basic qualification. Advisors can then gain specialist qualifications to become expert in one area, such as mortgages.

There are approximately 9,000 IFAs in Britain.

Some advisers have 'chartered financial planner' status, making them equivalent in professional standards to accountants and surveyors.