MortgagesJul 27 2016

Mystery Shopper: Southend-on-sea

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Each week the mystery shopper seeks advice from independent and tied advisers in the UK. The aim is to find out whether advisers are delivering the goods when it comes to the all-important initial telephone contact between client and adviser. It is only intended to evaluate this first interview, and it is understood that further meetings would be necessary before final decisions could be made. The purpose is not to expose poor selling practices, but to show constructively any weaknesses in the advice process.

This week the mystery shopper visits Southend-on-Sea. He is seeking to purchase a property valued at £250,000 with his brother who has been self-employed for a year and is in the process finalising his books. The shopper’s brother has a history of defaults, although they were settled more than four years ago. The shopper earns £35,000 a year and his brother earned £26,000 over the past year.

Adviser (Independent):

New Leaf Distribution, Princess Caroline House, 1st Floor, 1 High Street, Southend, SS1 1JE

Speed of response: Time of call: 12.43pm. The call was answered after one ring. 5/5

Telephone manner: Courteous and professional. 5/5

Relevant qualifications: Level four diploma. 5/5

Payment method: £295. 5/5

Guidance given:

It would be tricky, but not impossible, for the shopper to secure a mort-gage with his brother given his short term in self-employment, according to the adviser. His history of defaults is unlikely to be a cause of concern for most lenders as it happened a relatively long time ago. The adviser also told the shopper to consider an individual loan application as the rate of interest applicable to a joint mortgage is likely to be inflated to reflect the heightened risk of default posed by his sibling. 4/5

Knowledge:

The adviser appeared to have a solid grasp of the issues explored in the scenario. 4/5

Email/web presence:

elliott.cone@nldfs.com

www.newleafdistribution.co.uk 5/5

Verdict:

Very good. The shopper felt at ease with the adviser who patiently explained the reasons behind his assertions.

33/35

Adviser (Independent):

Affinity Mortgages (via Joseph R Lamb Independent Financial Advisers), 15 Nelson Street, Southend-on-Sea SS1 1EF

Speed of response: Time of call: 12.58pm. The call was answered by an automated machine. The shopper was transferred to a representative within 20 seconds. 5/5

Telephone manner:

Very friendly and professional. 5/5

Relevant qualifications:

Mortgage adviser (CeMap). 5/5

Payment method:

£250. 5/5

Guidance given:

The adviser expressed concern over the shopper’s brother’s circumstances. He said there are three lenders that would consider those with only one year’s books and a history of defaults. He said providers that lend to self-employed individuals with a bad credit history offer higher rates of interest compared to their mainstream rivals to reflect the risk the business poses to them.

4/5

Knowledge:

The adviser gave a comprehensive outline on how adverse credit can be detrimental to a mortgage application. 5/5

Email/web presence:

jeden@affinity-mortgage.com

www.affinity-mortgages.co.uk

5/5

Verdict:

The phone call was brief, but packed with easily digestible guidance that was delivered in a friendly manner.

34/35

Adviser (Independent):

Edward Paul Independent Financial Advisers, 617-619 London Road, First Floor, Westcliff-on-Sea, Essex SS0 9PE

Speed of response: Time of call: 1.05pm. The call was answered after two rings. 5/5

Telephone manner: Engaging and professional. 5/5

Relevant qualifications: Level four diploma. 5/5

Payment method: Commission from lender. 5/5

Guidance given:

The adviser warned there are not many – if any – lenders that would approve a mortgage application from an individual with one year’s books, the adviser warned. He added that his choice of providers is likely to be restricted to those that fall under the ‘specialist’ banner with a reputation of offering high rates of interest. 4/5

Knowledge:

The adviser had a good knowledge of all the considerations, particularly the higher rate of interest offered by specialist lenders. 4/5

Email/web presence:

paul@edwardpaul.co.uk

www.edwardpaul.co.uk

5/5

Verdict:

The adviser listened intently to the shopper’s scenario and delivered helpful guidance. The shopper left the conversation feeling he had a basic understanding of all considerations.

33/35

Provider

Coventry Building Society

Speed of response: Time of call: 1.22pm. Answered by an automated system and transferred in just over one minute.

3/5

Telephone manner: Friendly. 4/5

Relevant qualifications: The representative said she was not qualified to offer financial advice.

0/5

Payment method: Varies – dependent on the product.

3/5

Guidance given:

The representative said the lender does not consider individuals with less than two years’ books, and advised the shopper to contact a financial adviser.

3/5

Knowledge:

Difficult to gauge because the representative did not expand on the guidance above.

1/5

Email/web presence:

www.coventrybuildingsociety.co.uk/mortgages/home.aspx

3/5

Verdict:

The shopper appreciated the representative’s candour. She presented herself well and asked if she could be of further assistance at the end of the call.

17/35