Buy-to-letMar 21 2018

FA - Mystery Shopper West Sussex - IJO - 22032018

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FA - Mystery Shopper West Sussex - IJO - 22032018

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

Relevant qualifications: DipFS / MAQ. 5/5

Payment method: Typical fee of £995 payable once the decision in principle has been received. 5/5

Guidance: Adviser told the shopper that with a second property she would incur additional stamp duty of around £10,000. Most lenders will ask for a minimum deposit of 25 per cent of the value of the property – so with a £60,000 deposit she would be looking at a property valued at around £240,000. The shopper was also advised to take into account additional legal and valuation fees. 5/5

Knowledge: The adviser sounded quite knowledgeable. The shopper would also have liked a bit more information on the typical rental income that would match the lender's criteria. 4/5

Website: www.dbfinancial.co.uk

Email: doug@dbfinancial.co.uk 5/5

Verdict: The adviser was very helpful and knowledgeable.

34/35

 

Adviser: MJB (Partnership) (independent)

Address: 1 Dukes Court, Bognor Road, Chichester, West Sussex PO19 8FX

Speed of response: 11.23am. One ring and put through to adviser by receptionist. 5/5

Telephone manner: Fairly friendly. 4/5

Relevant qualifications: DipFS. 5/5

Payment method: A non-refundable fee of £200 for placing the mortgage plus commission from the lender. 5/5

Guidance: Adviser said that although he was qualified to advise on BTL, he had not done so in a while. But he told the shopper that for the deposit she would need 25 per cent of the property value. To meet the rental income, typically lenders want to see a minimum margin of 25 per cent between the mortgage and the rental amount. With a £60,000 deposit, the shopper would be a looking at a property of around £240,000. 5/5

Knowledge: The adviser was quite helpful, but as he said he had not advised on BTL for some time, the shopper was not completely sure he gave her all the information she needed. 4/5

Verdict: The adviser was professional and, despite not having advised on BTL mortgages recently, he provided information that was helpful. 

Website: www.mjbpartnership.co.uk

Email: bryan@mjbpartnership.co.uk 5/5

Verdict:

33/35