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
