How to: Get the most from your IFA

Buying your first home is one of the biggest financial decisions you'll ever make so getting the right advice is vital.

It's best to go to an independent financial adviser (IFA) rather than an adviser at a bank or building society. This is because bank advisers are usually 'tied', which means they can only offer products from a limited number of providers, whereas an IFA can recommend products from the whole market. Having access to more financial products will make it more likely that you find the product that is right for you.

In order to make the most of your financial adviser it's important you present them with a clear picture of your finances. This includes your income, outgoings, debts and other financial commitments such as child maintenance. Gather this information together before you meet your adviser.

Also think about what type of advice you want from your financial adviser. Do you just want advice about your mortgage or do you want to find out about investments and saving for retirement too? Think about your financial goals and tell your financial adviser what they are. For example, if you want to pay off your mortgage by the age of 45 and retire at 50, let them know so they can recommend products that work towards this.

Most financial advisers will discuss protection products with you. Protection is a type of insurance designed to cover your mortgage repayments or income in the event that you're unable to work. Think about whether you need this type of insurance before you meet your adviser.

Expert opinion:

Karen Barrett, chief executive of unbiased.co.uk

"Buying a home is one of the biggest financial commitments a person can make, and it's no surprise that 24% of homeowners say buying a house was the most stressful experience of their lives. Finding the right whole of market mortgage adviser to guide you through the process is invaluable - especially for first-time buyers. Unbiased.co.uk's search allows you to select specific criteria relevant to your situation to ensure you find a local adviser that best suits you individual needs."

Advice

When choosing an adviser, shop around and contact at least three advisers before selecting one. Discuss how you'll pay for the advice, ask about their qualifications and find out whether the adviser is independent, multi-tied or tied.
When choosing a mortgage, ask your adviser why product they are recommending is suitable, and check whether you have other choices. Also make sure you're considering your financial goals in the long term - should you be looking at retirement planning and savings also? Finally, understand what you're being told. Never be frightened to ask your adviser to clarify something if you're unsure.

Useful websites

www.unbiased.co.uk

www.moneymadeclear.fsa.gov.uk

Top Tips

Fees vs commission

Financial advisers get paid in two ways; by fees paid by the client or commission from product providers. Find out how much you'll have to pay your adviser. Don't be afraid to negotiate on fees and compare costs from different advisers. If you adviser is paid on a commission basis ask how much this will be.

Do the fact find in advance

A financial adviser will take you through a "fact find" to find out about your financial situation. Ask for the form, fill it in and return it to the adviser before you meet them. Make sure you include all the information they ask for. That way they can familiarise themselves with your information before you meet.

Get it in writing

When you adviser recommends mortgage and other products to you, insist on getting the recommendation in writing. Take the product literature away to read through before you sign it. If you don't understand anything, ask your adviser to explain it. Don't be pressured into agreeing to anything before you're ready.

Build a relationship

If you're pleased with the service you get from your financial adviser then keep in touch with them. You might need their services again when certain events happen in your life - for example, if you get married, have children or want to move to a bigger home. The more they know about your circumstances, the more they'll be able to hel