Almost three in 10 (28%) respondents to the OpenMoney UK Advice Gap research said they would not be comfortable choosing an appropriate mortgage.
The report also found that in the last two years, 12% had fallen behind on paying essential bills, including mortgages, while 13% had been unable to afford a deposit to move house.
59% (2019: 56%) reported having some form of household debt and 44% (2019: 46%) had run out of money before their next pay at least once in the previous year.
More than a third of young people will see pay affected by COVID-19
A million more people than last year feel they would benefit from financial advice but are unaware or unable to access free services.
Respondent confidence in their ability to manage money and make financial decisions remained high, with 62% (2019: 64%) stating that they did not need any help or advice.
In the last two years, just 10% have taken paid-for advice.
Of those who had not, eight out of ten (79%) are unlikely to do so in the future and 25% said they would be unwilling to pay for financial advice when arranging a mortgage or buying a house.