Mystery ShopperFeb 13 2019

Mystery Shopper: Watford

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Mystery Shopper: Watford

This week, the mystery shopper visits Watford. 

The shopper is enquiring on behalf of her mother, aged 69. The mother owns a three-bed house in Watford with no mortgage. The mother wants to generate about £200,000 to give her son money to buy a garage. The mother wants to take a lifetime mortgage or a loan – but is exploring other repayment options – to ensure her current home does not need to be sold off to repay the loan/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: Shabbar Kassam – Lighthouse Financial Advice (independent)

Address: 16 Woodside, Watford, WD24 6QS

Speed of response: At 11:52am the shopper is transferred directly to an adviser after four rings. 5/5

Telephone manner: The adviser is keen to help and friendly. 5/5

Relevant qualifications: Level 4 Dip PFS, CF6. 5/5

Payment method: The adviser said a maximum of £1,500 will be levied from his end. He said the amount is due once the shopper receives a mortgage offer, but he said he cannot specify how much exactly it will cost the mother. 4/5

Guidance: The adviser took a cautious stance and said he would need to meet the son or the shopper’s mother and assess the full situation. He explained that the lifetime mortgage will depend on her age, which will also determine the exact loan-to-value of the property. He said that the mother could take an interest-only mortgage, or take it with interest rolled up. He said whoever inherits the mother’s estate will have to pay off the LTV in full if they do not want to sell the house. 4/5

Knowledge: The adviser demonstrated a great knowledge about equity release, mortgage products and what the process of a lifetime mortgage will entail. 5/5

Website: https://www.lighthousegroup.plc.uk/

Email: shabbar.kassam@lighthouseifa.co.uk

5/5

Verdict: The adviser gave very useful information and managed to assist the shopper a fair amount despite suggesting that a face-to-face meeting is required first. 

33/35

 

Adviser: Evolution Financial Planning (independent)

Address: 7 Canterbury Rd, Watford WD17 1QT

Speed of response: The adviser picked the phone up at 12:26pm after three rings. 5/5

Telephone manner: The adviser appeared a little disinterested in the conversation. 3/5

Relevant qualifications: CeMap. 5/5

Payment method: The adviser said she cannot tell how much she will be charging exactly for the lifetime mortgage as she has not decided yet and will only begin advising on them in the next few weeks. However, she said she charges £400 for residential mortgages, a higher amount for equity release, and she said her fee will be “highest” for lifetime mortgages. 3/5

Guidance: The adviser said she has not begun advising on lifetime mortgages yet but is due to begin in the next few weeks. She said with lifetime mortgages you can generally raise about 40-50 per cent of the value of the home. She said once the mother passes away, the money borrowed on the property will need to be paid quickly and in full. 3/5

Knowledge: The adviser demonstrated sufficient knowledge around the process involved and implications of taking out lifetime mortgages. 3/5

Website: https://evolutionfinancialplanning.co.uk/

Email: sarahd@evolutionfinancialplanning.co.uk 5/5

Verdict: The adviser gave some useful information but seemed too disinterested to speak to the shopper or discuss in depth. 

27/35

Adviser: Lifetime IFA (independent) 

Address: 28 Victoria Street, Paignton, TQ4 5DN 

Speed of response: At 2:30pm the adviser picked up after two rings. 5/5

Telephone manner: The adviser was very friendly and talkative, and highlighted financial matters that were not obviously related to the shopper's situation. 5/5

Relevant qualifications: Level 4 Dip PFS, Level 3 CII. 5/5

Payment method: The adviser said that given the amount the mother wants to take out is around £200,000, the company will not be charging the mother anything as the company will be getting a commission of more than £1,495 from the provider. 5/5

Guidance: The adviser said there is usually some leeway and time period before the lifetime mortgage needs to be paid back upon death of the resident. He said this gives the next of kin the chance to decide whether to sell it, let it out or pay off the outstanding charges in full. The adviser also flagged that the £200,000 the mother is planning to gift her son could be subject to inheritance tax liabilities if she passes away before seven years. 5/5

Knowledge: The adviser demonstrated an excellent knowledge of lifetime mortgages, IHT and the risks and benefits associated to taking out lifetime mortgages.  5/5    

Website: http://www.lifetime-ifa.co.uk/index.php

Email: daniel@lifetime-ifa.co.uk 5/5

Verdict: Shopper’s choice: The shopper was very satisfied with this phone call. The adviser was extremely keen, friendly and helpful. He not only answered every question the shopper asked, but also offered knowledge on complementary products. 

35/35

Adviser: PJ Mortgages (independent)

Address: 354 St Albans Rd, Watford WD24 6PQ

Speed of response: At 2:45pm the adviser picked up after three rings. 5/5

Telephone manner: The adviser sounded impatient and came across as being quite curt. 1/5

Relevant qualifications: CeMap. 5/5

Payment method: The adviser said he will levy a fee of £350 and will be paid some commission from the lender. 5/5

Guidance: The adviser said he could refer the shopper to another company as “she will get access to people and deals that he can’t get hold of”. The adviser told the shopper that there is likely to be a delay before the shopper would have to pay back the loan due to probate fees and calculations, which the other advisers did not mention, however he did not go into specifics. 2/5

Knowledge: The adviser appeared to have a decent amount of knowledge of lifetime mortgages. 3/5

Website: http://www.pjmortgageservices.co.uk/ 

Email: higginsclive@btconnect.com 5/5

The adviser explained that all advisers at the company use btconnect email addresses. 5/5

Verdict: The shopper was a little disappointed with this call, while the adviser had a decent amount of knowledge he appeared irritated on the phone and had to be prompted to give information. 

26/35