Each week the mystery shopper seeks advice from independent 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 Cardiff. The shopper is 27 years old and works in IT. She and her brother want to buy a property around Cardiff for up to £250,000. They have savings of £5,000, but may be able to borrow from family. Finding mortgages is hard, as her brother is self-employed with only a year’s worth of tax receipts.
Adviser: JWA Financial Planning (Independent)
Address: Alexandra Gate, 2 Ffordd Pengam, Cardiff CF24 2SA
Speed of response: 9.45am. One ring and put through to adviser. 5/5
Telephone manner: Polite and friendly. 5/5
Key qualifications: CeMap qualification. 5/5
Payment method: £398 (including initial fee of £149 on application). 5/5
Guidance: The shopper was told that lenders typically want a two-year history of accounts, particularly for self-employed individuals. The number of lenders significantly reduces with only one year of tax receipts. The shopper was advised that she and her brother would need a minimum deposit of 5 per cent, although 10 per cent would be better. If they need to raise more, money lenders will accept a gifted deposit if coming from family. 5/5
Knowledge: The adviser sounded very knowledgeable about the opportunities available to the shopper. 5/5
Website: www.jwafinance.com
Email: rachel@jwafinance.com 5/5
Verdict: Shopper’s Choice: The shopper felt the adviser was clear about what her options were and she liked being given a lot of detail on the fees she would need to pay.
35/35
Adviser: Paul Taylor IFA (Independent)
Address: 19 Castle Lea, Monmouthshire, Caldicot NP26 4HR
Speed of response: 10.05am. One ring and put through to adviser. 5/5
Telephone manner: Helpful and friendly. 5/5
Relevant qualifications: CeMap. 5/5
Payment method: No cost on initial meeting. On mortgage approval lenders will pay commission, but the adviser couldn’t provide details on what this could be. 4/5
Guidance: The adviser told the shopper that her brother being self-employed is not a major issue; some lenders would be interested, although they are fewer in number. For a property valued at up to £250,000, the shopper would need up to £25,000 to cover the minimum 5 per cent deposit and additional costs and fees. 5/5
Knowledge: The adviser was very knowledgeable and detailed in his explanation about the shopper’s options. 5/5
Website: www.thinkpositive.co.uk
Email: paultaylor@thinkpositive.co.uk 5/5
Verdict: The adviser was very knowledgeable and behaved in a professional manner.
34/35
Adviser: HMC Holistic (Independent)
Address: Regus, Regus House, Falcon Drive, South Glamorgan, Cardiff CF10 4RU
Speed of response: 10.30am. One ring and put through to adviser. 5/5
Telephone manner: Polite and friendly. 5/5
Relevant qualifications: CeMap. 5/5
Payment method: First meeting is free and it’s £200 fee to apply for mortgage and a refundable fee of £299 if application refused. 5/5
Guidance: With one year’s worth of tax receipts, the adviser said he knew one lender that might approve an application. The adviser said the next steps would be to meet up, go through the process and get an agreement in principle. The shopper asked whether it would be better for her brother to wait to get two years’ worth of tax receipts. He said if she was keen to get a mortgage, waiting would mean more lenders. But a difference in price was unlikely. 5/5
Knowledge: The adviser was very knowledgeable, but she was curious as to why he did not encourage them to wait a little to get more tax receipts if it would open the way to more lenders. 3/5
Website: www.hmc-holistic.co.uk
Email: richardcox@hmc-holistic.co.uk 5/5
Verdict: The shopper felt the adviser was very knowledgeable and behaved in a fairly professional manner.
33/35
Adviser: Whitchurch IFA (Independent)
Address: 70 The Philog, Cardiff CF14 1EB
Speed of response: 10.45am. One ring and put through to adviser. 5/5
Telephone manner: Polite and friendly. 5/5
Relevant qualifications: CeMap / CF6 CII mortgage qualification. 5/5
Payment method: £295 to recommend a mortgage, even if it’s from a D2C lender. To recommend and arrange the mortgage, the fee is £595. 4/5
Guidance: The adviser said the shopper’s brother work status meant fewer lenders. Lenders are more likely to approve a self-employed person with one year’s worth of tax receipts if they work in the medical profession or the accountancy sector. She was advised that if she and her brother can get a £20,000 deposit, they could get cheaper rates from the lenders. Lenders will also want a clean financial history from a self-employed person, where the loan to value is 90 per cent or more. 5/5
Knowledge: The adviser sounded knowledgeable and behaved in a professional manner. 5/5
Website: www.whitchurchifa.co.uk
Email: james@whitchurchifa.co.uk 5/5
Verdict: The shopper felt the adviser was able to give her clear and detailed information, but she felt the fee to just recommend a mortgage was higher than expected.
34/35
