Buy-to-let  

FA - Mystery Shopper West Sussex - IJO - 22032018

FA - Mystery Shopper West Sussex - IJO - 22032018

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.

This week, the mystery shopper visits West Sussex. The shopper has inherited £70,000 and wants to invest about £60,000 in a buy-to-let-property. The properties she has seen so far range between £300,000 and £350,000. She currently owns a property of her own and earns around £35,000 a year as a marketing manager.

 

Adviser: Independent Options (independent)

Address: 119 George V Avenue, Worthing, West Sussex BN11 5SA

Speed of response: 10.40am. One ring and transferred to adviser. 5/5

Telephone manner: Friendly and spoke very quickly. 4/5

Relevant qualifications: CeMap. 5/5

Payment method: Typical fee of £750 through to completion, offset against any commission from the lender. 5/5

Guidance: Adviser said the shopper needs a minimum of 25 per cent of the property value as deposit as most lenders will lend a maximum of 75 per cent of the property value. Lenders also do a stress test calculation for the rental income to determine if there will be a healthy margin between the monthly mortgage and rent. On a £350,000 property, the shopper would need a minimum deposit of £87,500. She also needs to factor in additional stamp duty and legal costs. 5/5

Knowledge: The adviser sounded very knowledgeable and took the shopper through the rental income stress test calculation to enable her to understand the interest rate lenders typically assume in their calculations. 5/5

Website: www.theoptionsgroup.co.uk

Email: lisa@theoptionsgroup.co.uk 5/5

Verdict: The adviser behaved in a very professional manner and spent time with the shopper on the phone to explain how lenders arrive at various calculations.

34/35

 

Adviser: Pebble Independent Financial Services (independent)

Address: 136 Beach Green, Shoreham-by-Sea, West Sussex BN43 5YA

Speed of response: 11.03am. One ring and put through to adviser by receptionist. 5/5

Telephone manner: Friendly and helpful. 5/5

Relevant qualifications: CeMap. 5/5

Payment method: There is a standard fee of £399. 5/5

Guidance: Adviser told shopper she needs a minimum deposit of 25 per cent of the value of the property. With the £60,000 deposit amount, it might be more realistic for her to look for a property worth around £240,000-£250,000. Most lenders will also use a stress test to calculate if the the rental income will meet the mortgage requirements. The adviser also said that in some cases the longer the fixed period, the more favourable the stress test might be. 5/5

Knowledge:  Adviser was very knowledgeable and took the shopper through a number of calculations to understand the types of mortgages she might be able to get. 5/5

Website: www.pebble-financial.co.uk

Email: austin@pebble-financial.co.uk 5/5

Verdict: Shopper's choice. The adviser was very knowledgeable and helpful and also behaved in a very professional manner.

35/35

 

Adviser: DB Financial (independent)

Address: G4 Worth Corner, Turners Hill Road, Pound Hill, West Sussex, Crawley RH10 7SL

Speed of response: 11.15am. One ring and call answered by the adviser. 5/5

Telephone manner: Friendly and helpful. 5/5