Contravening the regulations?

LMS has been saying for a long time now that brokers and financial advisers are in real danger of losing mortgage business to estate agents over HIPs.

However, the full article written for (‘HIPs – the impact on brokers’, MI Online, 6 September 2007), seems to suggest that brokers are permitted to add to the pack’s items, such as a provisional mortgage offer and an automated valuation model. I’m afraid this isn’t the case.

The government regulations surrounding HIPs make it quite clear what is ‘authorised’ and ‘required’ to be in a pack. If brokers wish to place further documents in close proximity to a HIP, they should be clearly distinguished and set apart as ‘non-HIP’. In practice, it is only those documents which provide helpful information to potential purchasers which should be included. However brokers choose to enter the HIP market, they need to be careful not to contravene the regulations.

Yours faithfully

Dominic Toller
Director of marketing and new business

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