A new report reveals that lenders are not averse to Home Information Packs (HIPs) in general but are concerned about the practicalities of their introduction.
HIPs are packs that must be put together by people wishing to sell their homes after June 1st, 2007, that must contain title deeds, a property survey and other information.
Although they are likely to prove useful in the long run, lenders are concerned about how they will be introduced.
Research from the Council of Mortgage Lenders (CML) reveals that lenders are generally supporting the launch of HIPs but are concerned that the technical standards needed to incorporate them cannot be made available sooner.
They also believed that lenders' practices would change – for example, physical inspections of homes will become less common.
It is also believed that surveyors' resources will be stretched as they have to cope with both HCRs and valuation inspections for lenders.
Jackie Bennett, head of policy at CML, commented: "Lenders are generally not anti-HIP in principle. It is the practicalities, the government's expectations and the possible unintended consequences that cause them concern."To read more about property, click here.
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