Why employees need expert help when it comes to financial advice

Research published last year by Thomsons Online Benefits suggested more than two-thirds (67 percent) of employers do not offer any form of financial guidance, with 22 percent worried about the risk of getting involved with the financial lives of their staff and a similar amount worrying about the cost of doing so. The research also showed that of those surveyed nearly 8 in 10 (79 percent) do not offer mortgage broking to their employees despite the fact that mortgage costs can be one of the biggest financial burdens employees have. 

A lack of understanding of help

The problem is further highlighted by new research from Legal & General published this month, which showed that nearly a third (31 percent) of those who went directly to a lender didn’t understand how a mortgage advisor could help them when looking for a new mortgage deal and that 69 percent of borrowers who went straight to a lender had not remortgaged in the previous five years. Is it any wonder that employees are facing financial stress? 

The majority of those surveyed (60 percent) who hadn’t taken advice when they last took out a mortgage, didn’t know that advisors were there to help them, whilst a third (34 percent) thought mortgage advisors supported the lender. Respondents simply didn’t know that there were experts there to help them. 

More options available

The reality is that mortgage advisors offer impartial advice and often have access to a far wider range of mortgage options – up to six times the amount available directly, according to data from mortgage sourcing platform Twenty7Tec. They can save your employees money on a monthly basis by negotiating a new fixed-rate deal, help them buy their dream property or advise on releasing capital for other needs such as a wedding or child’s education. 

And, contrary to the worries highlighted in the Thomsons’ research, it doesn’t have to cost a penny for you as an employer. Your staff can access mortgage advisors through many different channels – including one-on-one sessions with mortgage advisors in their place of work. It’s an option that costs neither the employer nor the employee. And it’s a tactic that works, with the Legal & General research showing that 98 percent of those who had used a mortgage advisor saying they felt they were valuable and 95 percent recommending them to family or friends. Asking the experts really can pay.