Mortgages could be “bottlenecked” says Cuming

Louise Cuming head of mortgages at moneysupermarket the price comparison website, has warned that lenders could face difficult times preparing for the introduction of Home Information Packs (HIPs) when they become compulsory in June 2007.

Ms Cuming, has stated that the process could be hindered if there are not enough certified home inspectors in time for the implementation of the packs.

She said that the result of this could be that mortgage transactions will become bottlenecked and that the conveyance process could grind to a halt.

Ms Cuming says: "This is a fundamental change in the way our housing market works and there needs to be a concerted effort to educate the consumer so they are well prepared. Getting buyers to trust the information in Home Information Packs (HIPs) will be key.

"While some buyers may be worried about the impartiality of Home Information Packs (HIPs) – where the seller will bear the cost – it is up to the government and mortgage industry to make sure that inspectors are fully qualified and maintain robust standards."

She continued, nonetheless, the introduction of Home Information Packs (HIPs) is a positive step, and that first time buyers in particular will benefit.