Nearly a quarter of UK adults lack confidence comparing financial products, increasing reliance on brokers for clear guidance
Low levels of consumer confidence in everyday financial decisions are underlining the role of mortgage brokers as trusted advisers in a complex credit market, new research from specialist lender Pepper Money suggests.
Nearly one in four UK adults (24%) say they are not confident comparing financial products, including mortgages, loans and credit cards, pointing to a substantial advice gap that intermediaries are well placed to address.
Pepper Money’s Specialist Lending Study reports a widening divide in financial resilience, with younger adults, women and lower-income households the least sure of their choices when selecting products or managing borrowing.
The confidence gap is particularly marked among younger UK adults. More than half (51%) of 18- to 24-year-olds say they do not feel confident making financial decisions, compared with 27% of those aged 55 and over. For those at the start of their working lives, the combination of high living costs, student loan commitments, lower early-career earnings and a wide array of credit options means many are making decisions with limited understanding of how these will affect their credit record.
The study also identifies a gender disparity. Only 58% of women say they feel confident handling financial decisions, versus 72% of men. This suggests a significant proportion of women may be more at risk of disengaging from mainstream financial services or choosing products that do not fully meet their needs.
Debt management is another area of uncertainty. Almost one in five adults (18%) admit they do not know which debts to prioritise, indicating that existing cost pressures are being made worse by confusion over repayment strategies as well as affordability constraints.
There is broad support for improving financial education earlier in life. According to the research, 83% of UK adults back the inclusion of financial literacy within the national curriculum, reflecting a widespread view that better education is essential to building long-term resilience.
“Financial confidence is as important as financial income,” said Paul Adams (pictured right), sales director at Pepper Money. “We’re seeing that people aren’t just under cost pressures, they’re unsure what decisions to make, which could cause a cycle of money mismanagement. When someone doesn’t know which debt to prioritise or the right product to choose, the risk of falling into longer-term difficulty rises.
“Improving access to guidance and specialist support is key to preventing short-term stress turning into lasting financial damage. This is where the role of brokers is particularly key to help advise and guide people, particularly those who may be uncertain on the options available to them.”
Regional patterns in the data show that uncertainty is not evenly spread across the UK. In the East of England, 72% of respondents say they are confident comparing financial products. Confidence levels fall in several other regions, particularly in the Midlands and the North, where borrowers may be more reliant on intermediaries for support in assessing options.
London, despite its position as the country’s financial hub, records mid-range confidence at 65%. The findings suggest that higher living costs and the complexity of financial products available in the capital may be shaping how secure residents feel in their decision-making.
At the lower end, the East Midlands (58%), North East (59%) and West Midlands (61%) report the weakest confidence levels. The regional gap appears linked not only to differences in household income but also to uneven access to financial information, advice and support.
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