This week, the mystery shopper visits Lambeth.
The shopper wants to buy a new build property with her fiancé in Waterloo for £1.15m. The apartment is due for completion in November 2019. Currently another vendor owns the contract to the place. The shopper wants to know how contract reassignment mortgages work, what the interest rates will be and what happens if the shopper secures the deposit and gets the contract in her name, but cannot later secure the full mortgage.
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.
Adviser: LYFE Wealth (independent)
Address: 32 Threadneedle Street, London, Greater London, EC2R 8AY
Speed of response: The adviser picked up immediately after just one ring. 5/5
Telephone manner: The adviser was extremely patient and conversational. 5/5
Relevant qualifications: CeMap, Level 4 Dip PFS. 5/5
Payment method: The adviser said a fee of £695 is charged once the shopper gets a mortgage offer and the adviser said he gets a commission of 0.3 per cent from the lender. 5/5
Guidance: The adviser said the shopper should firstly get advice from a conveyancer to ensure the contract works for her, and not just the vendor she is buying from. He said most mortgages have a maximum window of three to six months, so the shopper would be taking a risk by entering this agreement and securing a mortgage as new developments can often be delayed. He added the adviser needs to “secure her interest” to ensure the contract is of a high standard. 5/5
Knowledge: The adviser demonstrated terrific knowledge of contract reassignment deals, evidenced by his own dealings and the risks involved. 5/5
Website: https://lyfewealth.co.uk/
Email: derek@lyfewealth.co.uk. 5/5
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Verdict: (Shopper’s choice) This adviser particularly stood out, as he said was more than willing to help, but highlighted all the risks involved and said he would only do so if the shopper ensured that she had taken legal advice, to reduce the risks of the property deal falling through.
Adviser: Aurora Financial Solutions (independent)
Address: 56-57 The Hop Exchange, Southwark Street, London, SE1 1TY
Speed of response: The shopper was first connected to the switchboard after a few rings, then had to answer quite a few questions, and then was finally connected to an adviser after further rings. 3/5
Telephone manner: The adviser was friendly and willing to engage. 5/5
Relevant qualifications: CeMap, Level 4 Dip PFS. 5/5
Payment method: The adviser said the company does not charge an upfront fee for the services, apart from a £150 application fee. It will also receive a commission in the range of 0.3 per cent to 0.5 per cent from the mortgage provider. 5/5
Guidance: The adviser asked several useful questions to assess the shopper’s situation. He asked for her income, her debts. The adviser said the shopper should be not paying any deposit until the terms of the contract become clearer and there is more clarity on when the new build will actually be completed. 4/5
Knowledge: The adviser demonstrated very good knowledge of the situation the shopper is facing and how she should proceed. 4/5
Website: http://aurorafinancial.co.uk/
Email: alistair@aurorafinancial.co.uk. 5/5
Verdict: The adviser was very helpful to the shopper and warned her that it was a risky transaction.
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Adviser: Plutus Wealth Management (independent)
Address: Bridewell Gate, 9 Bridewell Place, London, London, EC4V 6AW
Speed of response: The shopper was connected to the switchboard after two rings, asked many questions and then waited a further four rings before being connected to the relevant adviser. 2/5
Telephone manner: The adviser was friendly and talkative. 5/5
Relevant qualifications: CF6, Certificate in Mortgage Advice (CII). 5/5
Payment method: The adviser said they did not charge a fee for arranging mortgages above £500,000. Below this threshold, the adviser charges a fee of £495. The adviser said they get a commission fee of 0.33 per cent of the mortgage value. 5/5
Guidance: The adviser also told the shopper about a six-month timeframe for providing a mortgage. He said some lenders have extended this to nine months. But he didn’t think that paying a deposit would be too risky. 3/5
Knowledge: The adviser demonstrated above average knowledge of how contract reassignment and mortgages interact with each other. 4/5
Website: https://www.plutuswealth.com/
Email: andrew@plutuswealth.com 5/5
Verdict: The shopper felt this call answered all relevant questions.
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Adviser: Westminster Wealth Management (independent)
Address: 3rd Floor, Chronicle House, 72-78 Fleet Street, London, EC4Y 1HY
Speed of response: It only took one ring for the shopper to directly speak to the adviser. 5/5
Telephone manner: The adviser was extremely helpful and offered to call mortgage providers straight away and call back immediately. 5/5
Relevant qualifications: CeMap. 5/5
Payment method: The adviser said the shopper will be charged a fee of £395 once the shopper receives a mortgage offer. 5/5
Guidance: The adviser said he had previously dealt with contract reassignments, though it had been a while since he had. He reassured the shopper that lenders are aware that they need to be flexible on the time span of mortgages, and sometimes extend it beyond six months when dealing with new builds. He said he was sure he could connect her to an adviser and offered to call a few providers and give her a call back immediately. 5/5
Knowledge: Even though the adviser revealed that he had not deal with such mortgages for a while, he demonstrated great knowledge of how contract reassignment works. 4/5
Website: https://www.westminster-wealth.com/
Email: martin.lockyer@westminster-wealth.com. 5/5
Verdict: The shopper found it difficult deciding whether the adviser at Westminster Wealth Management or the adviser at LYFE Wealth was better. While the adviser at Westminster Wealth Management appeared most keen of them all and gave good advice, the adviser at LYFE showed a bit more knowledge of the risky nature of these contracts.
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