Implementing the Scottish house buying system in England could have a greater remedial effect on gazumping than Home Information Packs, say experts.Although HIPs are being championed by the government as a way to protect consumers from speculative sellers and cut the incidence of sales falling through, some in the industry believe overhauling the legal system in line with Scottish practices would be more effective. Unlike house buying under the English system, which is ruled by the caveat emptor or buyer beware principle, in Scotland purchasers are required to instruct their own surveys of properties and can then make either fixed price or sealed bid offers. If a seller accepts an offer it is the equivalent of an exchange of contracts and the buyer is given a completion date. Kevin Friend, associate accounts director at Primrose Mortgage Processing, says that although the disadvantage of the Scottish system is that buyers may have to instruct several surveys before they find the right property or before an offer is accepted, the advantage is that it eliminates all possibility of gazumping. He adds: “If we adopted a similar system in England it would solve the gazumping problem and we would have a much more serious house buying market.” Jonathan Burridge, managing director of Quantum, says: “Al-though HIPs are a good start in creating a fairer system, significant changes are needed in the English legal process to bring our antiquated and flawed system into line with modern practices.”
The Financial Services Authority has confirmed it will continue to judge firms’ standards of product sales and financial advice by the standards and rules at the time of sale and not retrospectively. This policy will not be changed by the regulator’s move towards more principles-based regulation.The framework the FSA operates under dictates that it will […]
There are many similarities between the jobs of football manager and mortgage broker, and Sven Goran-Eriksson provides a good role model for us all, says Sue Read
Speaking at todays Mortgage Summit in Jerez today lenders agreed that retention fees should be the way forward for lenders,Tim Hague, director at BM Solutions, says it is currently looking at its retention fee offering and he is sure that other lenders will follow suit.Charles Haresnape, managing director of mortgages at Bank of Scotland says […]
Dashboard has integrated with Place-Me, adding another option for mortgage brokers using its system when sourcing sub-prime, buy-to-let and second charge loans.
Health Shield has launched three new benefits and an important product enhancement for 2015. The new portfolio will appeal to both new and existing members and help employers boost and maintain workplace wellbeing.
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