A new initiative aims to clean up property sourcing’s reputation and help compliant agents get deals signed off by finance firms.

The 12-month pilot scheme, launched by the National Association of Professional Sourcing Agents (NAPSA) and specialist mortgage broker SPV Mortgages, hopes to revolutionise the sector by providing sourcing agents and deal packagers with a reliable way to assess the financing potential of deals before presenting them to investors.

Property deal 'sourcing' is the act of identifying properties that offer an investor their desired income, location and profit margin - among other facttors - and then receiving a fee for this work.

Finance-related challenges, such as declined mortgage applications, are a leading cause of property deal collapse, resulting in wasted time and unnecessary stress, explains the association.

Instead, NAPSA-approved property sourcing agents can submit particulars to SPV Mortgages, which will forward details to its finance supplier panel in the hope of receiving a positive offer or decision in principle. The finance firm will provide feedback on potential mortgage options, so sourcing agents gain insights and present confidently to investors.

Deal financing

SPV Mortgages and NAPSA will also collect data from the pilot scheme to identify trends, challenges, and solutions in property deal financing.

This service is provided free to NAPSA members, says founder and CEO Tina Walsh (main image). “Finance is a critical component of getting deals over the line, and often causes major headaches when deals fall through due to finance being declined,” she adds.

“Our partnership with SPV Mortgages is a game change for the property sourcing sector - we can start to learn and understand what may cause finance blockages or even failures, and what succeeds. This collaboration is not only about improving standards for the sector, but also about ensuring our professional sourcing agents have the tools to succeed in their business.”

Jonathan Veers, founder of SPV Mortgages, adds that lenders frequently look upon private property deals with suspicion and misunderstand the value of sourcing agents.

“Working with Tina Walsh at NAPSA, we’ve been able to open doors which have previously remained closed to property sourcing agents,” says Veers.

The initiative launches tomorrow (20th May) at 7pm with a webinar that anyone can join.