With HIPs due to be launched on 1 June 2007, Pink said intermediaries need to understand the opportunities available to them and familiarise themselves with what HIPs will mean for their business and their customers.
David Copland, sales and marketing manager director at Pink Home Loans, commented: “By allowing themselves plenty of time to research this development within the industry, intermediaries can make the most of the opportunities out there. It is essential intermediaries appreciate that although the margins will not be that high and consequently HIPs will not be the best money earner for the intermediary, they need to have some arrangement in place for their clients. Those that choose not to do so will find they may lose business to the competition, such as estate agents.”
However, Chris Belcher, mortgage adviser for A2B Mtg Co, said the level of uncertainty around the HIPs introduction made preparing for them difficult: “If we know it’s definitely going to happen, then of course we will know the ins and outs of the packs, but they keep changing. We will make sure clients are aware of them, but the government has already done a partial u-turn, so I wouldn’t be surprised if it did a complete turnaround before the launch. Personally, I think HIPs will die a death.”
