MortgagesAug 11 2016

Mystery shopper: Newcastle mortgages

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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 shopper visits Newcastle. He plans to relocate to London and is seeking advice on transferring his mortgage to a new property. He borrowed 90 per cent on a £168,000 flat. In addition, the shopper is midway through a five-year fix and has £125,000 in equity in the property.

Adviser (Independent): AWM Financial Services, Hadrian House, Higham Place, Tyne and Wear, NE1 8AF

Speed of response: Time of call: 4pm. The call was answered after two rings. 5/5

Telephone manner: Very friendly and engaging. 5/5

Relevant qualifications: Level four diploma. 5/5

Payment method: £295 for “straightforward” mortgage cases. 5/5

Guidance given:

The adviser told the shopper to speak to his mortgage provider in the first instance to see if he would be able to transfer his mortgage. She offered to arrange an initial consultation to discuss the scenario in greater detail. The adviser added that she would explore the suitability of other avenues, including consent to let and rent to buy. 3/5

Knowledge:

The adviser seemed to have a good grasp on the different considerations. 4/5

Email/web presence:

cwoodgate@awm-financial.co.uk

(website not given) 3/5

Verdict:

The shopper was impressed by the guidance given. He felt the adviser would be able to help him.

30/35

Adviser (Independent): Arena Nagel Clark Ltd, Hadrian House, Beaminster Way East, Newcastle Upon Tyne, NE3 2ER

Speed of response: Time of call: 4.11pm. The call was answered by an automated machine. The shopper was transferred to an adviser within 10 seconds. 5/5

Telephone manner: Professional. 5/5

Relevant qualifications: Chartered Financial Planner. 5/5

Payment method: £349 for a standard mortgage. 5/5

Guidance given:

No guidance given. The adviser said the best course of action would be to arrange a meeting to explore the shopper’s scenario in greater depth. 2/5

Knowledge:

Difficult to gauge based on the guidance given. However, the adviser said house prices in London are substantially higher and some lenders offer five times salary mortgages. 3/5

Email/web presence:

john@nagelclark.co.uk

(website not given) 3/5

Verdict:

The adviser was not impolite or rude, but seemed to have other things on his mind during the call.

28/35

Adviser (Independent): Ellis Bates Financial Solutions Ltd, Grainger Chambers, Hood Street, Newcastle Upon Tyne, Newcastle, NE1 6JQ

Speed of response: Time of call: 4.21pm. The call was answered after two rings. 5/5

Telephone manner: Friendly. 5/5

Relevant qualifications: Level four diploma. 5/5

Payment method:

Varies – the adviser did not give a ballpark figure, but said the levy was calculated on a case-by-case basis.

3/5

Guidance given:

Most lenders allow borrowers to port their mortgages, but are likely to charge an administration fee for the privilege, the adviser said. He added the shopper faces the prospect of taking out a second charge mortgage because of the higher property prices in the capital. 4/5

Knowledge:

Extensive. The adviser demonstrated comprehensive knowledge of the topic 4/5

Email/web presence:

nigel.swan@ellisbatesgroup.com

www.ellisbatesgroup.com 5/5

Verdict:

Very good overall. The adviser’s friendly approach to the conversation was particularly commendable.

31/35

Provider:

Natwest

Speed of response: Time of call: 16.31. The call was answered by an automated machine. The shopper was transferred to a representative within 30 seconds. 4/5

Telephone manner: Professional. 5/5

Relevant qualifications: The representative said he was not qualified to offer financial advice. 0/5

Payment method: Varies – on a case-by-case basis. 3/5

Guidance given:

The representative said the lender allows borrowers to port their mortgages if they meet the eligibility criteria. He referred the shopper to lender’s website to learn more about the topic. 2/5

Knowledge:

The representative displayed basic knowledge on porting. He said she could help the shopper if she had any further questions. 3/5

Email/web presence:

personal.natwest.com/personal/mortgages/moving-home.html 3/5

Verdict:

The representative was clear on the service on offer.

20/35