Mortgage lenders hit back at Hip 'scare stories'

Barclays and HSBC have hit out at stories that they will not accept personal searches included in Home Information Packs (Hips) in connection with mortgages.

A report in the Daily Mail claimed that the banks would demand that buyers carry out extra searches as they did not trust information in Hips.

The mortgage lenders responded by saying that they wanted searches vetted by solicitors, not new searches all together.

A statement from Barclays read: "Various stories have suggested that Barclays/Woolwich will not accept personal searches included in Home Information Packs in connection with mortgages. This is incorrect.

"Barclays/Woolwich will accept personal searches but at the conveyancer's risk. Our policy in this area is in line with other major mortgage lenders. Solicitors/conveyancers have always taken legal responsibility for searches and this remains the case."

Meanwhile a Council of Mortgage Lender spokesman told the BBC: "Lenders have agreed that as long as the property search organisation is a member of the Council of Property Search Organisations then the lenders will accept that search."

Paul Broadhead, Deputy Director General, Association of Home Information Pack Providers (AHIPP) responded by calling the report "muddled and misleading".

He said: "While it is clear that HSBC will not accept personal searches, this is nothing new and has always been their policy.

"However, it is important to note, that nine out of the top ten lenders, which represent over 75 per cent of all mortgage lending in the UK, will in fact accept personal searches."