That makes good sense Joan. But why is it so important to obtain independent professional advice on financial matters before making decisions which affect your family and future?
Picture these two scenarios…
A lady, seeking a mortgage for her first home, applies for one through a well known money comparison website, which she has used to search for current mortgage rates and the best fixed rate mortgage. However, her online loan application is declined due to her low credit score. Aside from the disappointment of not getting a mortgage offer, the process of being declined then has a negative effect on her already low credit score, lowering it further, and making it even more unlikely that she will obtain the best fixed rate mortgage offer at all by herself.
Another couple, already with a high street lender, arranged a mortgage with the insurance protection policies offered, which were tied to the lender. The lender’s insurance provider was subsequently bought by another insurance company. When this transition was made, the sum assured was set up incorrectly. In the event of the couple having to make a claim, this would present a significant problem, as they were now under-insured!
Reasons to be cheerful
Here are three reasons to get proper, independent advice before making a decision to purchase a financial product or service:
- Independent advice will ensure that the product offered is the right one for you, your family and your needs. In the industry we call this ‘fit for purpose’. This will give you peace of mind from knowing that the product will serve you in the way it is intended to.
- If for any reason, you were to be given wrong financial advice, you would be eligible for compensation in the future, e.g. if claimed through an industry Ombudsman. Customers deciding not to take proper financial advice are left without protection and with no come-back.
- An independent, professional advisor will search for and find the best product for your specific needs, not because they are tied to a particular company, or biased by commission rates.
In the case of the ‘spiral of credit score decline’ with the mortgage application described at the start of this blog, the client in question came to us after she had been declined for the mortgage. Happily, using our extensive network of contacts and considerable experience, we were able to find her the best fixed rate mortgage offer in just one week. This unhappy situation could have been avoided though, had she come to us for independent financial advice in the first instance.
In the case of the couple with mortgage insurance protection, we were able to improve the cover, by changing the four elements of the policy, splitting them between two other providers who specialise in the type of cover the couple required. Even better, the combined cost of the policies overall were lower than previously…through obtaining these, and reviewing their mortgage, we managed to save the couple almost £300.00 per month!
So how do you know where to get sound financial advice? Above all, you need to find a properly independent advisor to talk to.
At Evolution Financial Planning we are trusted experts, and are not tied to any company’s products. We simply look for best value for all our clients. Our aim is to understand each client’s individual circumstances and to offer bespoke recommendations. Overall, we provide our clients with peace of mind that they can protect themselves and their family’s future.
Our clients tell us about their exact circumstances and needs, and we rigorously search the market to find a product that is absolutely right for them. Why not contact us to see how we can help you.
What are your experiences of trying to get reliable financial advice? Please share them and your views on this with us by adding a comment below.