Is there enough ‘advice infrastructure’ to deal with interest only problem?

Ernst & Young is predicting there will be 20,000 advisers by the end of this year down by another 3,000 from the current 23,000. This does not include the bank sales advice retreat. It is only a prediction but it should be in the right ball park.

1.3 million interest-only mortgage borrowers may be facing a shortfall when they come to pay off the capital sum.The average gap may be around £70,000.

Now the interest only mortgage issue isn’t a scandal nor even a crisis yet. But it is a big concern particularly in parts of the North where prices have fallen a lot and property downsizing options are very limited.

All things being equal, one might suggest the best way to deal with this would be to direct as many of these borrowers to proper advisers. is doing valiant work to do just that. But will there be enough advisers? Twenty thousand advisers – makes about 65 shortfall sufferers for each one and doing the day job. That just doesn’t sound like enough to me.

Look a real problem for real people and a real advice gap.