Mortgage Advisors & Estate Agents
At Fern Wills & LPAs, we understand the importance of holistic property solutions, where mortgage advisors, estate agents, and estate planners work together to find the best solutions for clients.
We consult with the client's preferred Mortgage Advisor (MA) or estate agent (EA) or introduce them to one if they don't have one and seek advice for complex cases.
We will conduct our due diligence to ensure that the MA, EA service, pricing transparency, and business ethics are as excellent as ours. To strengthen MA and EA client relationships, we offer guidance and support on engaging clients and prospects in estate planning discussions. Estate agents quickly realise that estate planning is instrumental for client retention and acquiring new clients. We welcome calls from clients, mortgage advisors, and estate agents who want to discuss how we can work together to provide excellent service and a holistic outcome for all clients' property needs.
I regularly advise clients to contact their mortgage advisor about mortgage payment protection. As a CeMap (distinction) qualified person, I understand the essential role that insurance plays in protecting the home against loss of income due to no fault of the clients.
I have been writing Wills for clients for over a decade. I am now in the fortunate position that Clients may call me to ask for advice on behalf of their adult children. In the last two weeks, I have had two calls asking me to recommend a mortgage broker and one for an estate agent.
Case examples.
🌿Leaving property in a Will
As part of a fact-finding exercise, a client told me he wanted to leave this £460k house to his wife and three children.
I asked. "What percentage of the property is mortgaged (Loan To Value - LTV)?"
He said about £185k, so roughly 40% LTV.
I asked, "If either of you passed away, could the other maintain the mortgage payments or pay it off?"
He said, "No"
My answer was that he could not leave the house to his children with certainty until he had a solution to either clear the mortgage or was prepared to sell it.
Whilst he knew about mortgage protection, he had considered being alive to sort out problems if he could not pay the mortgage due to loss of income through no fault of his own. He had not thought that he or his wife may not be alive to do so.
I referred him to the mortgage advisor to arrange a suitable insurance policy.
🌿Keeping the client - trusted advisor
A couple spoke to their mortgage broker about getting a better deal. They had eight months left of a four-year fixed rate. Though the mortgage advisor wanted the business, he was ethical and told the clients to hold onto the deal that they already had. He would then renew a search for them when they had two months to go.
He asked them if they had a Will in place to pass the property on to a loved one. They said no. He said "Oh, Ok" "Let me fix that for you"
He introduced Fern Wills, who helped the client. This reinforced the mortgage advisor's "trusted Advisor status", demonstrated his holistic approach to all their property needs, and maintained the relationship for the next six months until he found them the best mortgage deal.
If there is a mortgage on the property, it can not be passed to anyone else unless the mortgage is taken over or, more likely, repaid. This can cause delays and distress and ultimately result in the loss of the home.
🌿Referring to a mortgage advisor
The first had received a small inheritance that we discussed may be coming several years ago. The customer wanted me to re-write their Will to consider the new financial circumstances. They also gave part of it to their daughter as a deposit on a first house. She wanted to know who could help a first-time buyer with a generous deposit but low income.
🌿Referring to an estate agent & mortgage advisor & financial advisor
The second was shocked at how much their estate was worth and their Inheritance tax burden due to the rise in their property value. I referred them to a financial advisor. We worked together on the client's estate plan. Part of the solution was to move cash to a pension plan, with nominated beneficiaries on death.
The second part was a Flexible Life Interest trust that allowed gifting to beneficiaries as PETS (potentially exempt transfers).
The third part was to give money to their son to buy a house. The house could be small, maybe two bedrooms, but would need a very large secure garage or enough land to build large workshop sheds. the area must be fairly private for security. These could be used for the son's landscape building business. I referred to an estate agent who could source these more unusual properties. He found a farmhouse cottage with land and a good garage. Being self-employed, the Mortgage advisor found the best lender.
