Each week the mystery shopper seeks advice from independent and tied 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.
This week the shopper visits Northampton. With a baby on the way, he and his wife are seeking to purchase a house to the value of £200,000 with a 25 per cent deposit. He is keen to get an interest-only mortgage, but only for the first few years. The couple have a combined annual income of £54,000 and a good credit history.
Adviser (Independent):
Cade & Co LLP
1 High Street, Harpole, Northamptonshire, NN7 4DH
Speed of response:
Time of call: 3.55pm. The call was answered after four rings.
5/5
Telephone manner:
Polite, engaging and professional.
5/5
Relevant qualifications:
Level four diploma.
5/5
Payment method:
Commission.
5/5
Guidance given:
It is not impossible, but very difficult to secure an interest-only loan according to the adviser, who added that monthly premiums are unlikely to be too dissimilar to repayment loans, given the current low mortgage rates. The adviser then quizzed the shopper to gauge his affordability and used an online tool to generate some quotes. 4/5
Knowledge:
The adviser displayed strong understanding of interest-only mortgages. 4/5
Email/web presence:
chris@cadeandco.co.uk
5/5
Verdict:
Very good. The shopper went the extra mile by generating quotes for the shopper as well as delivering helpful advice in a timely fashion.
33/35
Adviser (Independent):
David Williams IFA Chartered Financial Planners
Redlands, Cliftonville, Northampton, NN1 5BE
Speed of response:
Time of call: 4.05pm. The call was answered after two rings. 5/5
Telephone manner:
Very friendly and professional.
5/5
Relevant qualifications:
Certificate in Financial Planning (PFS).
5/5
Payment method:
Likely to be £250 given the loan amount according to the adviser.
5/5
Guidance given:
Lenders that offer interest-only mortgages require applicants to have a large deposit of at least 25 per cent, and a suitable repayment vehicle in place such as endowments, the adviser said. He asked the shopper a host of questions to gauge his affordability and offered to generate mortgage quotes. 5/5
Knowledge:
The adviser seemed to have a good grasp of the topic. 4/5
Email/web presence:
tim@dwifa.co.uk
5/5
Verdict:
The adviser should be commended on his approach to the conversation. He was friendly, attentive and gave useful information.
34/35
Adviser (Independent):
All Saints Financial
44 Reynard Way, Northamptonshire, NN2 8QX
Speed of response:
Time of call: 4.16pm. The call was answered after three rings. 5/5
Telephone manner:
Courteous and professional. 5/5
Relevant qualifications:
Diploma In Financial Planning (CII). 5/5
Payment method:
£500. 5/5
Guidance given:
The adviser said the shopper would be unable to secure an interest-only mortgage because of stringent regulation. He said that stepped mortgages, where the loans starts off at one interest rate for a short set period and then jumps to another rate afterwards, could best suit the shopper’s circumstances. He suggested arranging an initial meeting for a more in-depth discussion. 3/5
Knowledge:
The adviser was somewhat presumptuous by claiming that the shopper would not be able to secure an interest-only mortgage without conducting a fact-find. 3/5
Email/web presence:
rob@allsaints.agency
5/5
Verdict:
The adviser was polite in his approach, but he was too quick to rule out an interest-only mortgage as a potential solution.
31/35
Provider:
TSB
Speed of response:
Time of call: 4.23pm. Answered by an automated machine. The shopper was transferred to an adviser within one minute.
3/5
Telephone manner:
Friendly. 4/5
Relevant qualifications:
The adviser said she was qualified to offer mortgage advice. 4/5
Payment method:
Varies – on a case-by-case basis. 4/5
Guidance given:
The shopper said the lender would be able to offer an interest-only loan to the shopper at 75 per cent loan-to-value (LTV) if he had a suitable repayment vehicle, such as an endowment policy and stocks and share savings, that would cover the loan amount. She told the shopper to seek independent advice if he needed advice that took into account other products in the marketplace. 3/5
Knowledge:
The adviser displayed a good knowledge of the provider’s interest-only lending criteria. 4/5
Email/web presence:
http://www.tsb.co.uk/mortgages/guides/interest-only-mortgage-guidance/
3/5
Verdict:
The adviser delivered useful information, and should be lauded for putting the lender’s commercial interests aside by highlighting the benefits of independent financial advice.
25/35
