This week, the mystery shopper visits Chester. After gaining a promotion in his marketing role which requires him to move to the city, the shopper and his long-term partner, both aged 26, are looking to secure a mortgage for a two-bed home worth between £250,000 and £300,000. They have a deposit of £50,000, savings of £8,000, and no outstanding debt. The shopper’s current £30,000 salary is soon to rise to £35,000, and his girlfriend earns £32,000 a year.
Adviser (Independent):
Innes Reid Investments Limited, Dee House, Hoole Road, Chester, CH2 3NJ
Speed of response:
Time of call: 10.42am. The call was answered after one ring. 5/5
Telephone manner:
Polite and very friendly. 5/5
Relevant qualifications:
Level four diploma. 5/5
Payment method:
Flat fee of £250 and commission from the lender. 5/5
Guidance given:
The adviser said that he would have to meet the shopper to better gauge his circumstances. He explained the difference between tracker and fixed-rate mortgages, adding that the suitability of either would depend on the shopper’s attitude to risk and affordability. He said that many first-time buyers were opting for five-year fixes because they were a less risky proposition. 4/5
Knowledge:
The adviser displayed good knowledge of the topic, correctly explaining that trackers are the riskier of the two propositions. 5/5
Email/web presence:
craig@innesreid.co.uk
www.innesreid.co.uk 5/5
Verdict:
The shopper found the adviser, who gave comprehensive explanations to his questions, to be helpful, and appreciated his insight into current market trends.
34/35
Adviser (Independent):
Cambrian Chartered Financial Planners,17-19 Glynne Way, Hawarden, CH5 3NS
Speed of response:
Time of call: 11.17am. The call was answered after two rings. 5/5
Telephone manner:
Friendly yet professional. 5/5
Relevant qualifications:
Level four diploma. 5/5
Payment method:
No fee. The adviser takes commission from the lender. 5/5
Guidance given:
The adviser said that he would need to do an initial fact-find on the shopper, to better gauge his circumstances. He explained the difference between fixes and trackers, adding that although rate reductions are possible with the latter, lenders often cap the value to which rates can fall. He said that the suitability of the two propositions would depend on the shopper’s attitude to risk and affordability. 3/5
Knowledge:
The adviser displayed good and comprehensive knowledge of the topic, giving examples of rates available at different loan-to-value levels. 4/5
Email/web presence:
p.heald@chestertongrant.co.uk
www.cambrian-associates.co.uk 5/5
Verdict:
Very good overall. The adviser gave good guidance in a friendly yet professional manner.
32/35
Adviser (Independent):
Arrow Financial Services UK Limited,4 Friarsgate, Chester, CH1 1XG
Speed of response:
Time of call: 11.29am. The call was answered after four rings. 5/5
Telephone manner:
Very friendly and polite. 5/5
Relevant qualifications:
Mortgage adviser. Certificate in Mortgage Advice and Practice (CeMAP). 5/5
Payment method:
Flat fee of £195 and commission from the lender. 5/5
Guidance given:
The adviser stressed that she would need to meet the shopper before offering tailored guidance. However, she said that many first-time buyers opt for fixes due to their stability – although this did not necessarily mean fixes would be right for the shopper. The adviser also explained how fixes compared with trackers. 3/5
Knowledge:
The adviser seemed familiar with the process of securing a mortgage, and the different products in the market. 5/5
Email/web presence:
rhian@arrowfs.co.uk
www.arrowfs.co.uk 5/5
Verdict:
Good overall. The shopper felt that the adviser was holding back information so that the shopper would not take the guidance as advice. 33/35
Provider:
Chelsea Building Society
Speed of response:
Time of call: 10.59am. The call was answered by an automated system which transferred the shopper to a representative after 40 seconds. 3/5
Telephone manner:
Professional. 5/5
Relevant qualifications:
The representative said he was not qualified to give financial advice. 0/5
Payment method:
Variable. 4/5
Guidance given:
The representative explained the differences between tracker and fixed mortgages, adding that he could not say which option would be better suited to the shopper. He said that the shopper would have to complete an eligibility questionnaire before applying for a mortgage. 3/5
Knowledge:
The representative defined tracker and fixed mortgages, although not in very much depth. 2/5
Email/web presence:
www.thechelsea.co.uk/mortgages 3/5
Verdict:
The shopper would have liked more information on the subject in general, although he appreciated that the representative was not qualified to give advice.
20/35
