Hips cost escalating

Posted: 22 Aug 2007 11:01:36 GMT


            Property News - Hips cost escalating

A problem with the Home information pack (Hip) scheme has been highlighted, with many sellers being forced to pay twice for a pack.

A problem with the Home information pack (Hip) scheme has been highlighted, with many sellers being forced to pay twice for a pack.

After initially forking out around £500 for a Hip, home sellers are now being required by their mortgage lender to pay for another local authority search on the home they want to buy.

It has come about because some of the major lenders, such as HSBC and Barclays, are not trusting local authority searches and want their own to be carried out.

This is causing a serious headache for the borrower, who is forced to pay for both the first Hip and the search, leaving them £1,000 out of pocket.

"This is yet more proof that Hips are almost completely and utterly worthless," Tory housing spokesman Grant Shapps remarked to the Daily Mail.

"Gordon Brown cannot claim to be on the side of homeowners unless he scraps this disastrous scheme."

Hips became part of the home-selling process for properties with four or more bedrooms from August 1st and properties with three bedrooms will become part of the scheme from September 10th.

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