Latest HIP accusations muddled and misleading

Paul Broadhead, Deputy Director General, Association of Home Information Pack Providers (AHIPP) responds to suggestions today that some mortgage lenders will not accept personal searches included in Home Information Packs (HIPs):

“Consumers should not be concerned by today’s reporting, which has been muddled and misleading. 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 10 lenders, which represent over 75% of all mortgage lending in the UK, will in fact accept personal searches.

“Over half a million personal searches are conducted every year and consumers have been free to choose whether they opt for a personal or Local Authority search for many years.

“The early roll out of HIPs, which commenced back in November 2006, covered over 18 towns and cities across the UK. During the roll out we looked to address any issues that arose surrounding the implementation of HIPs and it was not our experience that personal searches caused any concerns. Personal searches already account for around 50% of the market today and are accepted by the majority of lenders. Whether lenders such as HSBC elect to accept personal searches or not is their individual choice and their position on this is in no way as a result of the introduction of HIPs.

“Consumers are advised to only use HIP providers who adhere to the HIP Code, which is subscribed to by over 90% of the pack providing industry. This sets out minimum standards for subscribers and will ensure stringent regulation and redress for all those who obtain their HIPs through a registered provider, eliminating any concerns surrounding the reliability of searches contained in the HIP.”