The Guardian Financial Group has revealed that almost two thirds of callers to its arrears helpline are instructing Guardian to handle negotiations on their behalf as a result of the need for expert financial guidance.
This figure comes on the back of the latest FSA arrears statistics that 13,161 homes were repossessed by mortgage lenders in the third quarter of last year representing a 92% jump on the same period in 2007.
Guardian says it believes that this is a clear indication of the need for mortgage brokers and IFA's to adapt appropriate holistic advice to best serve their clients needs.
Guardian launched its free arrears helpline earlier this year and has been inundated with calls from financially concerned consumers. The firm reveals the two major problems reported are that people are over-committed on their unsecured debts and due to paying the unsecured debts first are piling pressure on the mortgage payments. The other main issue, according to feedback from the helpline, is job losses and the subsequent lower income levels as a result.
"The current economic situation is a dour one and this really underlines the importance of educating those with financial concerns and being in a position to help people before they get too far down the line," explains David McCann, managing director at Guardian.
"Intermediaries who are seeing an increasing number of clients experiencing credit difficulties can go a long way to helping their clients by offering suitable solutions or, at the very least, having a strong affiliation with a specialist in this sector of the market.
He concludes: "This will not only prove invaluable to clients but also to themselves as the chances of retaining the business and referrals will be greatly enhanced."IFAonline
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