Stephen Maskens, chief executive of Hipstar, said brokers should consider getting directly involved with HIPs so they can control the customer from the start of the transaction. He added being a HIP provider would increase brokers’ new business and leads.
Maskens said: “If HIP providers help estate agents to be more effective at cross-selling mortgages to the brokers existing clients and passing business, brokers will be excluded from a HIP market dominated by estate agents. The risk is that a new HIP agent could be introduced, forcing the broker down the food chain and presenting more cross-selling opportunities to vendors.
“If a broker becomes the HIP agent it is possible to direct the vendor to selected estate agents. Agents have said to me they would pass on a 0.25 per cent split of the house value for an introduction leading to a sale.”
However, Maskens forecast that only around 20 per cent of brokers would provide HIPs.
Richard Sexton, business development director for e.surv, commented: “HIPs are not really a threat to brokers’ business. They are only predicted to cost around £200-300, so there’s not much opportunity for brokers to make money. They have to think carefully about why they would get into supplying them.”
