Mystery ShopperJun 12 2019

Mystery Shopper: Leicester

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Mystery Shopper: Leicester

This week, the mystery shopper visits Leicester.

The shopper hopes to secure a joint mortgage with their partner. Neither has owned property before and would like to know more about their options and what they can do to plan ahead. Their combined income is £100,000, and they have savings of £50,000, which they want to put towards a deposit.

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: Leicestermoneyman Mortgage Broker (independent)

Address: Granby Street, Leicester, LE3 1HR

Speed: At 10am the shopper was transferred to a mortgage adviser within seconds. 5/5

Telephone manner: Friendly and professional. 5/5

Qualifications: CeMAP. 5/5

Payment method: There would be a one-off fee or an hourly broker fee depending on the mortgage and the lender, not exceeding £600. 5/5

Guidance: Information would be gathered through a fact find in a free consultation, taking place at a location of the shopper’s choosing, as all advisers work from home. Following further prompting, she explained the advice would be based on the mortgage product and any protections bought with it. Further documentation, such as payslips and bank statements, would then be sent alongside the lender application. 3/5

Knowledge: The adviser explained the basics of the government’s Help to Buy schemes available to those buying into a new property or shared ownership. She also noted that the whole process of taking out a mortgage could take up to 12 weeks. 3/5

Website: https://leicestermoneyman.com/

Email: cathy@ukmoneyman.com 5/5

Verdict: The mortgage adviser discussed the payment method, gave a range, and explained the mortgage advice process, as well as some of the options available to the couple. However, she needed some prompting to give any details on the options.

31/35

Adviser: Mortgage Advice Bureau (appointed representative)

Address: 3 Halford St, Leicester LE1 1JA

Speed: At 10:30am the shopper was asked to leave a number and an adviser called back within the hour. 3/5

Telephone manner: Friendly and professional. 5/5

Qualifications: CeMAP. 5/5

Payment method: The adviser said there was no cost for an initial meeting and it would be difficult to give a range without more details, but added there may also be legal conveyancing fees of up to £1200 to £1600 and a charge for the valuation, depending on the property. 4/5

Guidance: Because he was part of a network, the adviser explained he was not tied to a lender or estate agent, therefore would be able to find good value. Even if they put down a 10 per cent deposit, given their earnings and savings, they would still qualify for a good rate. He added that lenders require proof of income and credit history. 5/5

Knowledge: If they bought into a new property under the government’s Help to Buy scheme, they would need 25 per cent for the deposit, the loan would be interest-free for five years and they would not pay stamp duty. He suggested a Help to Buy Isa was a long-term solution and might not be necessary, while shared ownership was designed for smaller deposits. 5/5

Website: https://www.mortgageadvicebureau.com

Email: danny.sohal@mab 5/5

Verdict: The mortgage adviser was friendly and very knowledgeable, gave a good description of the options available, and was willing to give further details without much prompting.

32/35

Adviser: GP3 Financial Solutions (independent)

Address: 50 Rosemead Drive, Oadby, Leicester, Leicestershire, LE2 5SF

Speed: At 10:45am the shopper was transferred quickly to a wealth manager. 5/5

Telephone manner: Polite and professional. 5/5

Qualifications: Associate of the Chartered Institute for Securities and Investment with a level 4 investment advice diploma. 4/5

Payment method: Free initial consultation, while fees depend on the product. No other charges on top. In terms of Isas and pension investments, they would charge an initial percentage fee on the investment amount, typically at 3 per cent. 4/5

Guidance: More information would be gathered in the initial meeting, where they would discuss income expenses, savings, investments and longer-term plans such as pensions. Although his business does not handle mortgages specifically, the wealth manager offered to help the couple gain a better understanding of their finances and chances of getting on the property ladder. 4/5

Knowledge: If they were saving to buy their first home, they could save into a Help to Buy Isa and the government would boost their savings by 25 per cent, but the maximum amount you can save is £12,000, meaning they would only get a top-up of £3,000 from the government. Whatever they decided to do, he could help them make a well-informed decision. 4/5

Website: https://gp3fs.com

Email: joel@gp3ss.com 5/5

Verdict: The wealth manager was friendly and knowledgeable about estate planning and the importance of getting on the property ladder and covered some of the main options available to first-time buyers, but he could not give advice on the mortgage process itself.

31/35

Adviser: Meridian Mortgages (appointed representative)

Address: 68 Pullman Rd, Leicester, Wigston LE18 2DB

Speed: Asked to leave a number and an adviser called back within the hour. 3/5

Telephone manner: Friendly and professional. 5/5

Qualifications: CeMAP. 5/5

Payment method: After a free initial conversation, the shopper would only pay the fee for an accepted mortgage application, roughly between £300 to £500. 5/5

Guidance: An initial conversation would take about half an hour and could be conducted over the phone where they could discuss some of the government schemes available to first-time buyers in more detail. He would suggest the house prices they should be looking at. Once they found a property, he would be able to help with the mortgage process. 5/5

Knowledge: As they could already afford their ideal property price and having saved a 10 per cent deposit, they could avoid the Help to Buy loans. But of all the schemes, he suggested a Help to Buy equity loan might be most suitable, where the government lends you up to 20 per cent of the cost of your newly built home, so they would only need a 5 per cent cash deposit and a 75 per cent mortgage to make up the rest. 5/5

Website: https://www.meridianmortgages.net/

Email: kamesh@meridianmortgages.net 5/5

Verdict: Shopper’s Choice: The adviser was friendly and professional, gave a range of the costs of taking out a mortgage through a mortgage adviser, which would guarantee the best value, and was upfront about the couple’s options given their savings.

33/35