With the launch date of HIPs one year away, brokers have admitted the Scottish system would serve a better purpose, as it prevents gazumping and provides market stability as, once an agreement has been made, borrowers are unable to back out of the deal.
Speaking at the Mortgage Brain Premier Events, Don Green of Aark Green Financial Planning said HIPs would harm the housing market. “HIPs are a stupid idea and will have no benefit. They may even slow down the process of selling a property.”
Another broker, Milan Mehta said: "HIPs would be a much better proposition if an independent body, such as the government, took charge of their implementation. However the issue of who pays would be a concern.”
None of the 15 representatives believed HIPs in their current format were a good idea, and Desmond Tourick, principal at 1st Call 4 Mortgages, argued: “If I was to come up with something to help the housing market, HIPs would not be it.”
However Karen Babington, sales and marketing director at Easier2move, said: “HIPs have been debated ever since they were first discussed. The bottom line is they are happening, so the industry has to act.”
She added: "The Scottish system is looking at its own version of HIPs, Purchaser’s Information Packs (PIPs), so the two systems might not actually be that different.”
