This week, the mystery shopper visits Peterborough. The shopper is married with a baby and is considering an interest-only mortgage. She currently rents property with her husband and would like to buy a three-bedroom house for £300,000 to £350,000. They have a deposit of £40,000.
Adviser: Haverfords (independent)
Address: 8a Cowgate Peterborough PE1 1NA
Speed of response: 10.06am Transferred to adviser after one ring. 5/5
Telephone manner: Friendly and professional. 5/5
Relevant qualifications: CeMap. 5/5
Payment method: £249 on full mortgage application. 5/5
Guidance: Adviser said the shopper and her husband might find it difficult to get an interest-only mortgage as the lending criteria has become tougher. They will typically calculate affordability as if the mortgage application were on a repayment basis. Interest-only mortgages are more likely to be approved if the shopper has a repayment plan for the capital at the end of the mortgage term. 5/5
Knowledgeable: Adviser sounded knowledgeable and offered to find out a bit more information. 4/5
Website: www.haverfords.co.uk
Email: kat.chiva@haverfords.co.uk 5/5
Verdict: Adviser was friendly and helpful with the information she provided.
34/35
Adviser: Canter Holland (independent)
Address: 16 Commerce Road, Lynchwood, Peterborough PE2 6LR
Speed of response: 10.18am. One ring and transferred to adviser. 5/5
Telephone manner: Friendly and professional. 5/5
Relevant qualifications: CeMap. 5/5
Payment method: Flat fee of £120. 5/5
Guidance: The adviser said lenders typically ask for a sizeable deposit of about 25 to 50 per cent of the value of the property. Lenders also want to see the shopper has a plan for repaying the loan capital, once the interest payments have been paid off. The adviser suggested that if the reason the shopper wanted interest-only was so their monthly payments could be lower, some lenders might consider extending the mortgage term to 35 years. 5/5
Knowledge: The adviser sounded knowledgeable and spoke in some detail. 4/5
Website: www.canterholland.com
Email: markbattson@canterholland.com 5/5
Verdict: The adviser behaved in a very professional manner and explained things clearly to the shopper.
34/35
Adviser: Anstee and Co. (independent)
Address: 5 Brooklands Court, Kettering Venture Park, Kettering, Northants NN15 6FD
Speed of response: 10.30am. One ring and transferred to adviser. 5/5
Telephone manner: Friendly and professional. 5/5
Relevant qualifications: Certificate in mortgage advice (CII). 5/5
Payment method: £395 on mortgage completion. 5/5
Guidance: The adviser said there are fewer interest-only mortgages about now as the lending criteria has become tougher, but it is not impossible. The adviser also said lenders would consider £40,000 too low for a deposit, and would want a minimum of 25 per cent, and total household income would need to be £100,000 a year or more. However some banks, such as Santander, are known to be more flexible. 5/5
Knowledge: The adviser told the shopper that she should not overlook the idea of repayment-only on a fixed rate as it could prove as cheap as interest-only depending on the terms. He was also helpful in explaining loan-to-value and the historical background to the scarcity in interest-only mortgages. 5/5
Website: www.anstee.co.uk
Email: john@anstee.co.uk 5/5
Verdict: Shopper’s choice. The adviser was very helpful; explaining the past and present issues with interest-only and taking the shopper through some calculations to give her an idea of the financing she might be facing.
35/35
Adviser: Riverglen Financial Associates (independent)
Address: 35 North St, Bourne PE10 9AE
Speed of response: 10.49am. One ring and transferred to adviser. 5/5
Telephone manner: Friendly and professional. 5/5
Relevant qualifications: Certification in mortgage advice (CII). 5/5
Payment method: On mortgages of the size the shopper is looking for, paid commission by lender. 4/5
Guidance: The adviser said interest-only mortgages are a lot harder to get because lenders want to see a suitable repayment vehicle, such as a savings plan. The adviser suggested the shopper should also consider Help to Buy or shared ownership schemes, even though they both come with some restrictions. He also suggested the shopper set up a Help to Buy Isa to help with the deposit. 5/5
Knowledgeable: The adviser was helpful and sounded knowledgeable about the market. He also asked the shopper plenty of questions about her circumstances. 4/5
Website: www.riverglenifa.co.uk
Email: charlie.riverglen@btcomnnect.com 4/5
Verdict: The advised behaved in a professional manner and was helpful.
32/35
