The shopper wants to buy a holiday home on the Isle of Wight, costing about £300,000.
She has a mortgage on her south London home, which is valued at £500,000.
She wants to know whether she should remortgage her home or opt for equity release to raise funds for a deposit for the holiday home.
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: Rouse Limited (Independent)
Address: Mill Court Cottage, Furrlongs, Newport, Isle of Wight, PO30 2AA
Speed of response: 10.55am. The shopper was transferred to an adviser. 5/5
Telephone manner: The adviser was friendly and patient. 5/5
Relevant qualifications: CeMap, CeRER. 5/5
Payment method: The adviser said the initial meeting would not cost anything. A total of £150 would be charged for a further meeting and a further £250 on completion of the remortgage. 5/5
Guidance: The adviser said the shopper would not be eligible for equity release, as she was less than 55 years old. He said a remortgage would work, but if the shopper was on an interest-only deal it may be more difficult. He said it would be easier to get a remortgage if the shopper were on a repayment mortgage. 4/5
Knowledge: The adviser demonstrated good knowledge of the remortgage rules and eligibility criteria. 4/5
Email/web presence: https://www.rouseltd.co.uk/
phil.more@rouselimited.co.uk. 5/5
Verdict: The adviser was extremely helpful but the shopper would have liked a rough estimate of how much equity the shopper could release from the remortgage.
33/35
Adviser: Positive Solutions (Independent)
Address: 41 High St, Shanklin, Isle Of Wight, PO37 6JJ
Speed of response: 11.39am. The shopper was transferred to an adviser. 5/5
Telephone manner: The adviser was friendly and polite. 5/5
Relevant qualifications: CeMap, Level 4 DipPFS. 5/5
Payment method: First meeting would be free of charge, then £250 would be charged for research up until completion. 5/5
Guidance: The adviser urged the shopper to first check with their current lender how much equity could be taken out as this would be cheaper than obtaining a full new remortgage deal. The adviser said this was because of various exit penalty fees that may be incurred as a result of changing lender. 3/5
Knowledge: The adviser demonstrated good knowledge of mortgages, remortgages and the consequences of taking out a remortgage. 3/5
Email/web presence: https://www.intrinsicfs.com/about-intrinsic/positive-solutions/
mikenranson@thinkpositive.co.uk. 5/5
Verdict: The shopper received great advice and had a good telephone experience.
31/35
Adviser: Prospect Mortgages (Independent)
Address: 25 Oakwood Rd, Ryde, Isle of Wight, PO33 3JT
Speed of response: 11.45am. The shopper was transferred to an adviser. 5/5
Telephone manner: The adviser was polite but had to be slightly prompted to speak. 4/5
Relevant qualifications: CeMap ER1, ER2, ER3. 5/5
Payment method: No fee for the initial consultation and then a flat fee of £399 for the full remortgage. 5/5
Guidance: The adviser warned it would be costly for the shopper to get a remortgage with a separate lender due to the exit fees the shopper would have to pay. He said the shopper would be better off getting a remortgage with the existing lender to release equity for the deposit and then the shopper could use any lender to purchase the holiday home on the Isle of Wight. 4/5
Knowledge: The adviser demonstrated sound knowledge of remortgage rules. 4/5
Email/web presence: https://www.prospectmortgage.co.uk/
nick@prospectmortgage.co.uk. 5/5
Verdict: The shopper was given great advice on the various pros and cons associated with switching mortgage lender.
32/35
Adviser: Thinking Finance (Independent)
Address: 26 West Hill Rd, Ryde, Isle Of Wight, PO33 1LQ
Speed of response: 13.35pm. The shopper was transferred to an adviser. 5/5
Telephone manner: The adviser was patient and friendly. 5/5
Relevant qualifications: CeMap, Level four DipPFS. 5/5
Payment method: The adviser said nothing would be charged unless a remortgage deal was sought. A simple mortgage deal would cost £349, but if the situation were unique and required more work, the adviser said they would charge £499. 5/5
Guidance: The adviser said the shopper could either increase the debt with the existing lender or get a new mortgage. He warned holiday home mortgages are not open to the whole of the market, and it may be tricky to obtain a mortgage, especially because the shopper already had a residential home loan. He asked the shopper to consider whether she would let out the holiday home as a buy-to-let and to think of other avenues on where to get financing from. 5/5
Knowledge: The adviser demonstrated sound knowledge of the eligibility criteria and of how mortgages work. 5/5
Email/web presence: http://www.thinking-finance.co.uk/
ian@thinking-finance.co.uk. 5/5
Verdict: The adviser gave the most detailed advice compared to other advisers and made the shopper aware that holiday home loans are not necessarily accessible to the whole of the market. He gave the shopper other options as well as the same advice on consulting the existing lender that the other advisers gave.
35/35
