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Mortgages on sourced property


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Hi hubbers

A broker is telling me that if I buy a property via a sourcer the lender will charge higher rates and a higher arrangement fee.

 

The additional costs seem to make sourced property un-investible. 

 

Anyone have any experience of this? Mortgage in a ltd company.

 

Thanks

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They are correct. The majority of lenders will ask if a sourcing fee has been paid and if the answer is yes then they will decline the application. There are a number of lenders who don't mind but their rates tend to be slightly higher.

Regards Simon

Searchlight Finance Ltd

T:01565 654005

 

Landlord and specialist property finance advisor only dealing with investors, landlords and developers throughout the UK and beyond.

Buy to Let - Commercial Finance - Bridging Loans - Development Finance - HMO Finance - Refurbishment Loans - Multi Let - Limited Company - Student Lets - Portfolio Finance

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  • 2 weeks later...

Hi 

We are looking to use sourcers for our next project. Reading the above. What is the reason mortgage companies refuse or increase rates or fees? Is there more risk associated with these deals? 

Thanks a lot. 

Rich

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