With the effects of the credit crunch and the subsequent global recession at the forefront of everyone’s mind, consumer confidence, especially in financial services has widely been assumed to be at rock bottom.  But examine the evidence and the reality is not so downbeat.

Nationwide’s Consumer Confidence Index has continually dropped since about September 2007, but has remained steady since the turn of the year, an indication that the majority of consumers are of the opinion that we have seen the worst and that there is, finally, light at the end of the tunnel.   This positive outlook would appear to be well founded if evidence from the National Institute of Economic and Social Research (NIESR) is anything to go by.  They have estimated that the British economy grew by 0.2% in April followed by 0.1% growth in May – an encouraging indication that the recession may have bottomed out.

Surprisingly, research by the Financial Services Research Forum shows that the financial services industry is more trusted by consumers than respected institutions such as the BBC and NHS, despite the crisis that has bedevilled the economy.

A closer inspection of the financial services industry shows that independent (i.e. not tied to a particular lender or panel of lenders) brokers and advisers are seen as the most trustworthy, with credit card companies seen as the least trustworthy.  With the high profile collapse of a few high street lenders such as Northern Rock, it is hardly surprising that consumers are placing their trust in independent brokers and advisers, utilising their expert, and critically, impartial advice to secure the most suitable deal when shopping around for their mortgage.

Peter Attenborrow is an independent adviser with national broker Mortgage Advice Bureau and comments, “By not being tied to any lender I am free to search the whole of the market.  Even in the current climate I can search thousands of mortgages from over 80 lenders, as well as protection products from Legal & General. I offer simple, honest advice to my customers, who can trust that after thoroughly assessing their needs, I will do what’s right for them.”