If a HIP was sufficient for the lender than I would go along with this. But however, one has to consider the cost for the seller – as much as 2 per cent for estate agents, 1, 2 or 3 per cent for stamp duty, then the valuation and set up fee for the new lender. My question is, if we are pushed into having HIPs, why are they not sufficent for the new lender to be able to use as security? I am sure most people will look twice at moving with all these costs now having to be met, especially second-time buyers who are just now moving up the property ladder from their very first house.
Terry Keen
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