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Sourcing company/mortgage issues


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Ive been looking into using a sourcing company to make my first couple of investments and have been trying to find out as much as i can regarding how they work and whether or not it would actually be a good option for me.  

 

Today ive been adviced by a well respected mortgage broker to not use a sourcing company, as lenders wont lend where there is a fee payable to a sourcer. 

 

Im not sure what to think now, because surely a lot of people using sourcing companies will be using a mortgage/s. 

 

Any thoughts on this would be really appreciated. 

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  • 3 months later...
  • 2 weeks later...

Update after I've seen the well-respected sourcing company; they know the mortgage brokers that can make the lenders understand the proposition. I guess it's unlikely that sourcing companies can survive off cash sales so the mortgage market has to work for them somehow!

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  • 1 month later...

Hi Simon

It was RMP I went to see. They haven't had an opportunity that fits my criteria yet so I can't report much more.

I have also been following WeSellBMV's emails and wonder if anyone has any experience of dealing with them or could recommend/warn against any other sourcers.

 

Thanks

Daryl

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I bought a property recently via a sourcer and ended up getting the mortgage from the bank with whom I have a current account.  They offered me a better deal than the mortgage broker recommended by the sourcer and there was no issue with the fact that the purchase was through a sourcing company.

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  • 3 years later...

Hi everyone, i know it was 2017 post and I wonder if using a sourcing company still an issue with mortgage lenders? I mean if the fee paid to the sourcing company covered by cash not put into mortgage, would it still be an issue? I assume lenders would not know if the property is from a sourcing company or an estate agency?

Anyone can share any views? Thanks

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On 8/11/2020 at 7:59 AM, Daryl Leeds said:

Hi. I think the concern is potentially over the property valuation being more suspect. There are plenty of lenders who don’t mind though - you just need a good broker. 

I thought the valuation is based on neibouring similar houses, can the sourcing company affect the lender's valuation? Sorry that it might be dumb question.

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