MortgagesOct 11 2017

Mystery shopper: Norwich

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Mystery shopper: Norwich

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 Norwich. The shopper wants to raise money to start a business and as a result wants to remortgage her property or go through a lending platform. There is about £80,000 equity in the property she shares with her husband.

Adviser (independent): K2 Financial Services

Address: 83 Grove Road, Norwich, NR1 3RT

Speed of response (time of call): 11.55am. One ring and put through to adviser. 5/5

Telephone manner: Helpful and polite. 5/5

Relevant qualifications: Dip PFS (Personal Finance Society Diploma). 5/5

Payment method: Commission, but dependant on package. 4/5

Guidance: The shopper was told lenders are less likely to look favourably at her situation because she is not earning. Even though the shopper’s husband is earning about £45,000, at a mortgage of 4.5 times his salary, the amount might not be enough for the remortgage needed. He also advised her that a second charge could mean higher rates to pay. The adviser referred the shopper to The Funding Circle as a possible avenue to get a loan. 4/5

Knowledge: The adviser was knowledgeable about the shopper’s potential options and was very realistic with her about her prospects. 5/5

Website: www.k2fs.co.uk

Email: info@k2fs.co.uk 5/5

Verdict: Shopper’s choice. The shopper felt the adviser was very helpful and knowledgeable and appreciated the fact that he referred her on to another company, The Funding Circle, to see if she had a better chance at getting a loan.

33/35

 

Adviser (independent): Jones Financial Planning

Address: 9 Bank Plain, Norwich, NR2 4SF

Speed of response (time of call): 12.15pm. One ring and put through to employee who gave the shopper the telephone number for the adviser. 4/5

Telephone manner: Helpful and friendly. 5/5

Relevant qualifications: CeMap (Certificate in Mortgage Advice and Planning). 5/5

Payment method: Commission and a possible valuation fee. 4/5

Guidance: The shopper was told that lenders typically reject remortgage applications where money is being raised to inject into a business, as legislation has become tougher. But the shopper was advised another option could be a second charge mortgage or a further advance with the existing lender. With a second charge, the level of requirements might not be as strict as a first charge or normal mortgage. 4/5

Knowledge: The shopper felt that the adviser had a fairly detailed knowledge of the market. 4/5

Website: www.jonesfinancial.co.uk

Email: barry@jonesfinancial.co.uk 5/5

Verdict: Although the adviser was knowledgeable, the shopper was not sure if he showed her all the options she could have gone for, such as a start-up loan or a lending platform.

31/35

 

Adviser (independent): Harrold Financial Planning

Address: 8 The Fairland, Hingham, Norwich, NR9 4HN

Speed of response (time of call): 12.30pm. One ring and put through to adviser. 5/5

Telephone manner: Friendly and helpful. 5/5

Relevant qualifications: CeMap. 5/5

Payment method: £345 arrangement fee if application successful plus a possible commission. 4/5

Guidance: The shopper was told that lenders do not typically approve applications where the borrower wants to use the money to put into a business. A remortgage would be the cheapest route, but not the easiest in terms of what the lender will require. The shopper was told another option could be a start-up loan from a bank. The adviser wanted to arrange a fact find with the shopper to go through next steps to determine what is appropriate for her. 4/5

Knowledge: The adviser appeared to be very knowledgeable about the shopper’s options. 5/5

Website: www.hfp.co.uk

Email: anna@hfp.co.uk 4/5

Verdict: The shopper felt the adviser was very helpful and honest with her about all the options available or not available to her. The company lost a mark for its initials-only web address.

32/35

 

Adviser (independent): Goldwire Financial Solutions

Address: Norwich Office, Ketteringham Hall, Church Road, Ketteringham, NR18 9RS

Speed of response (time of call): 12.50pm. The shopper was given the direct number of a mortgage adviser to call by a Goldwire employee. 4/5

Telephone manner: Friendly and helpful. 5/5

Relevant qualifications: CeMap. 5/5

Payment method: Standard fee of £995, but would really depend on package secured. 4/5

Guidance: The shopper was told that the challenge for her would be in trying to raise money for business, which is not something the lender would consider. So, a remortgage on a house would not be the right route in this case. Other options the adviser pointed to were either a second-charge loan or a commercial mortgage. 4/5

Knowledge: The adviser appeared to be very knowledgeable about what options the shopper should be looking at, even though not all of the options were favourable to her. 4/5

Website: www.goldwirefs.co.uk

Email: david.weeds@goldwirefs.co.uk 5/5

Verdict: The adviser was able to give the shopper a wide variety of options, including the possibility of a commercial mortgage, but she would have also liked to have been given some options for unsecured loans as well.

31/35