The Council of Mortgage Lenders (CML) says it has received an indication from the government that there will be a "dry run" on home information packs ahead of their introduction in 2007.
Bernard Clarke a spokesman for the CML says a “dry run” is necessary as the introduction of Hips involves major changes for professionals and consumers. He says lenders need time to fit the information into their own IT systems.
He adds: “By and large most of the industry would like a dry run. We understand the government will put the dry run into its plans and we have received an indication that they will do so.”
Speaking at a lunch in Cardiff on Wednesday, Michael Coogan, director general of the CML, called for a fixed date for the implementation of home information packs and for them to be piloted in time for the mortgage industry to adapt.
Coogan said: “We need an implementation date that is fixed, but a plan that has at its heart a dry run in which the industry can use the packs before they are made mandatory.”
Jeremy Leaf, a spokesman for Rics, says a dry run will definitely be included in the implementation plan. He adds that Rics supports the dry run and feels it should be as robust as possible so consumers are ready for Hips when they are introduced.
Meanwhile the Association of Mortgage Intermediaries (Ami) has today released a new Factsheet to help mortgage intermediaries to plan for the introduction of Hips.
Ami says it is concerned that too few intermediaries are considering the impact Hips could have on their business, and is hoping providing information on them early will encourage firms to plan ahead.
Chris Cummings, director general of Ami, says while Hips are new, the demand for quality independent mortgage advice will remain.
“Some commentators have focussed on the possible consequences of a market slowdown but the real issue for intermediaries is ensuring their services are not overlooked because home movers are ‘captured’ by competitors. Now is the time to plan to stop this from happening,” he says.
Ami is in discussion with the Office of the Deputy Prime Minister to highlight the value of professional mortgage advice. It says it will be monitoring the dry run planned for sometime next year to assess the likely impact on intermediaries.IFAonline
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