Remortgaging forms core of IFAs' business

More than a quarter of independent financial advisers' business is coming from clients who are remortgaging to take advantage of lower interest rates, research showed today.

Arranging a mortgage for a client accounted for 28% of IFAs' business during the past three months, according to Sesame, which provides services for financial advisers.

But with stock markets remaining volatile, advisers said only 6% of their business came from clients wanting to put their money into medium or high risk investments, while 19% came from people looking for low risk havens for their cash.

Around 14% of people had been taking out protection products, such as life insurance, and one in 10 had also been putting their money into savings accounts.

Debt consolidation accounted for 9% of IFAs' business during the period, but only 6% were investing in their pensions and the same proportion were putting money into a buy-to-let property.

The research also found that 70% of IFAs feel optimistic about their business despite the uncertain economic conditions, but only 49% were confident about the outlook for the wider financial services market.