This week, the mystery shopper visits Sheffield, in South Yorkshire. The shopper is calling on behalf of her father who is 62 years old and wants to release equity of about £50,000 from his property. He wants to use money to go on a worldwide trip and pay off his car loans and credit cards. His property is worth between £500,000 and £550,000 and he has an outstanding mortgage of £100,000.
Adviser (independent): Pace Financial Management
Address: 200 Ridgeway Road, Gleadless, Sheffield, South Yorkshire S12 2TA
Speed of response (time of call): 10.15am. One ring then put through to an adviser. 5/5
Telephone manner: Helpful and friendly. 5/5
Key qualifications: CeMap and ER1. 5/5
Payment method: First meeting is free. If the shopper’s father wanted to proceed with equity release application there would be a flat fee of £595. 5/5
Guidance: The adviser said her father was old enough to be eligible for equity release, but to consider if there would be enough money left to do what he wants. Typically, equity release providers provide funds that make up 24 per cent of the total value of the property. If that is about £120,000 to £132,000 (24 per cent of £500,000 to £550,000) after paying off the mortgage balance, this would leave £20,000 to £32,000. The adviser said the older he gets, the more providers are likely to lend. 4/5
Knowledge: The adviser appeared to be knowledgeable, but only spoke about equity release products and did not suggest any alternative options. 3/5
Website: www.pacefm.co.uk
Email: j.slater@pacefm.co.uk 5/5
Verdict: The shopper felt the adviser was very knowledgeable about equity release. However, her father is quite keen to take a trip soon and doesnot want to defer it, so would have liked options.
32/35
Adviser (independent): Polaris Wealth Management
Address: 45 Tylney Road, Sheffield, South Yorkshire S2 2RX
Speed of response (time of call): 10.35am. One ring then transferred. 5/5
Telephone manner: Polite and friendly. 5/5
Key qualifications: ER1 and CF6. 5/5
Payment method: First meeting is free. Charges for remortgages are a £295 fee. With equity releases it is hard to predict as it is paid as commission. 4/5
Guidance: The adviser told the shopper that while considering the equity release route her father should also consider if a remortgage would be a better option. This is because at 62 years old he is still quite young and could pay off his mortgage by the time he is in his 80s and still be able to leave a decent pot of inheritance to his children. Taking into account his earnings and future pension, he might be able to get more favourable terms with his mortgage. 5/5
Knowledge: The adviser was knowledgeable about various options. However, if the shopper’s father wanted equity release he would refer him as it is not something he advises on regularly. 4/5
Website: www.polariswealth.co.uk 5/5
Email: gregory@polariswealth.co.uk
Verdict: Shopper’s choice. The shopper liked the fact that the adviser was able to provide options that could be more favourable for her father.
33/35
Adviser (independent): WFI Financial
Address: WFI Financial, WFI House, 2 Queens Road, Sheffield, South Yorkshire S2 4DG
Speed of response (time of call): 10.50am. The shopper was put through to an adviser after a minute on hold. 3/5
Telephone manner: Polite and fairly friendly. 5/5
Key qualifications: ER1. 5/5
Payment method: £500 for an equity release application. 5/5
Guidance: The adviser told the shopper that owing to the complexities of equity release, there is a lot for her father to think about. This is why the adviser would prefer to set up a face-to-face meeting. Then she would be able to provide the shopper’s father with an array of options. The adviser was not keen on providing information to the shopper over the phone. 3/5
Knowledge: The adviser sounded confident and may have been knowledgeable about equity release, but was reluctant to provide information so the shopper was non the wiser about options. 3/5
Website: www.wfifinancial.co.uk
Email: clairew@wfillp.co.uk 5/5
Verdict: The shopper would have liked to have been given broad ideas about the options available to her father. She felt she would have been able to grasp the basic details about equity release.
29/35
Adviser (independent): Asset IFA (the shopper was referred by another firm that no longer deals with equity release enquiries)
Address: 17 Stone Delf, Fulwood, Sheffield, South Yorkshire S10 3QX
Speed of response (time of call): 12.10pm. One ring then put through to an adviser. 5/5
Telephone manner: Polite. The shopper interrupted the adviser who was dealing with something else, so was a bit distracted at first. 4/5
Key qualifications: CeMap and Home Reversion qualification. 5/5
Payment method: The lender would pay a procuration fee. 3/5
Guidance: Initially, the adviser told the shopper to send him an email with her enquiry, but during the course of the conversation he proceeded to give some information. He said equity release should be seen as a last option as it would leave less inheritance. He also explained the difference between a lifetime mortgage and a home reversion, both features that come under the equity release umbrella, depending on what the borrower chooses. 4/5
Knowledge: The adviser sounded knowledgeable, but the conversation did not go into as much detail as the shopper would have liked. 4/5
Website: www.assetifa.co.uk (A holding website that only contains contact details.)
Email: tony@assetifa.co.uk 3/5
Verdict: The shopper felt the adviser knew what he was talking about, but she could not get as much information as she would have liked because he was distracted.
28/35
