Blundering on with HIPs...
22 Aug 2007 - JG
The latest HIPs calamity is reported today. It is becoming apparent that some mortgage lenders are refusing to accept a crucial part of the reports. Solicitors, mortgage lenders and even some HIPs providers warned that many homebuyers would have to pay at least another £200 for their own local authority searches because those provided in the home sellers' pack cannot be trusted. That is addition to the cost of getting the pack in the first place. Now, obviously it is the seller that pays for the pack (CA. £500), but of course they will be passing the cost on the buyer anyway not to mention the fact that most buyers are sellers. So far from making selling and buying a house easier, HIPs are making it more expensive and are so inadequate that to get a mortgage you have to go through a more rigorous process anyway.
Peter Ambrose, director of Hips provider The Partnership, has said "-Sellers paying for Hips containing such searches may well find their buyer's solicitor will not accept them and may want sellers to reimburse them for the additional costs incurred in commissioning new searches.-" So I am still left asking the question, what are these packs good for?