Cost of HIPs to hit consumer

The cost of Home Information Packs will hit the consumer, the Council of Mortgage Lenders warned today.

Alex Solomom, policy officer at the CML, says: “There are many ways to pay for the packs, but the cost will come from the consumer, the question is when will it hit the consumer.”

Solomon also says there are problems as to when the cost will hit the consumer. He says the question is whether the customer will pay for the HIP before the offer goes through, or wait until after completion, which will mean the lender substituting the cost.

There were also questions raised about securitisation and whether or not the pack will include a valuation.

Lenders are worried that if the packs include a valuation, and that valuation turns out to be wrong, then they would not be protected.