Consumers seek advice on different topics as mortgage approvals drop

The number of consumers seeking independent financial advice on mortgages dipped sharply during the final quarter of 2007 relative to the previous three months, according to figures from Unbiased.co.uk’s Advice Drivers report.

The figures also display an increased interest in offshore investment and expatriate services, with a 10% rise also reported in advice on ethical investments relative to the same period in 2006.

Unbiased.co.uk’s Advice Drivers report demonstrates once again consumers’ faith in independent financial advice, as Unbiased.co.uk received over half a million requests for details of a local IFA in the last 12 months. As the credit crunch begins to squeeze the real economy, the number of consumers seeking advice on mortgages has shown a dramatic decline over just three months. The Advice Drivers report also highlights the longer-term trends of rising demand for advice on offshore and ethical investments, as well as advice on expatriate services. These product areas are now more popular than they were during the same period in 2006.

David Elms, Chief Executive of Unbiased.co.uk, commented: “Our latest report shows how adaptable the independent financial advice sector is to a changing economic climate. Although mortgage applications are down and hence demand for advice on mortgages is also dropping, demand for good independent financial advice on offshore and ethical investment products is rising and the advice sector is meeting that demand. Consumer needs are constantly changing and whole-of-market IFAs are the best-positioned of all advice types to serve these needs.”