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Ive been advised today by a well respected mortgage broker not to use a sourcing company, as lenders wont lend where there is a fee payable to a sourcer.
Surely this cant be true, or do most people using sourcing companies use cash?
Any info on this would be much appreciated.
That Broker is correct that many lenders actually have it written in their criteria and terms that they won't lend where a property club / sourcing company is involved.
Full disclosure is of course required and non disclosure of this fact (whether accidental or deliberate) could potentially harm your shared record between lenders.
There are, however, various such clubs and depending on who they are you will find that the more established ones with a proven quality track record are known and accepted by some lenders. Your Broker should be able to assist with this.
If https://www.PTFS.co.uk can assist, please contact us anytime.
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There are many mortgage lenders that do not like it when you use a property sourcing company.
It is not unheard of - this being found out after an application to a lender when a property has been punted about for a while and multiple people have tried to buy it.
Property Sourcers have a real bad reputation with Mortgage Lenders. They are why the six month rule exists, as originally they put themselves in the middle of a transaction but nowadays its done with contracts.Its the same beast but a different process.
A few lenders are ok with it but wont lend you money to pay the sourcer.
Your mortgage broker is correct in this.
_________________________________________________________________________The above post is not financial advice, its often me rambling - passing time on a coffee break.If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance._________________________________________________________________________
I have bought 3 in the last 2 years from a sourcing company, no problems getting a mortgage, 2 with birmingham midshires ,1 with Accord, I had 4 props already ,so don't know if that helped.
What sourcing companies did you use?
I used Property Insight Scarborough for all 3
They manage them as well as I am in East Anglia and the properties are in Sheffield/Birmingham
Oh Ok, Well Ive never used one or had to use one so was just curious.