Hips row rolls on

Posted: 23 Aug 2007 11:30:42 GMT


            Property News - Hips row rolls on

Reports that mortgage lenders are refusing to accept personal local authority searches as part of Home information packs (Hips) have been denied.

Reports that mortgage lenders are refusing to accept personal local authority searches as part of Home information packs (Hips) have been denied.

A number of lenders were said to be turning down personal searches and demanding that a borrower pay for a new one to be carried out before money was lent to buy a home.

However, this has been denied by the lenders, who say that they merely want a solicitor to vet the paperwork before it is accepted.

Savills, a property advisor, said that lenders are right to be cautious and warned home buyers to be careful when buying a property that comes with a personal search.

"It is not surprising that some lenders are wary. The government and Hip providers have been trying to present the case that personal searches backed by an insurance policy are as good as official searches. This is simply not the case," said Christopher Lacy, Savills' director.

"If something is wrong with the personal searches, receiving £10,000 insurance money for a reduction in value of the property is often not what the buyer wants.

"What is more, the buyer is stuck with the property that he or she would not have bought at all if they had been aware of the deficient issue," he added.

Hips are due to be expanded from September 10th so that they become a mandatory part o the home-selling process for properties with three or more bedrooms.

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