Thursday 10 April 2008

Is everyone showing their HIPs?


The HIP has been with us for several months now, and the expected great excitement of the public about it has been manifested in a number of spontaneous demonstrations throughout the land. We were caught up in one of these in error at Clapham Junction Railway Station as we made our way home recently. Although none of the crowd was chanting: "What do we want? HIPs! When do we want them? Now!", their intention was clear as they made their way to the various platforms.

Several people have remarked to us over the last few weeks how the HIP has transformed their lives. Accolades such as "waste of money", and "pain in the neck" have been bestowed widely, even by people who might not be expected to understand what HIPs actually are, such as mortgage brokers. On that score, we have been holding a daily: "Be Nice to Mortgage Brokers Minute", at 3.05am each day, and if you want to take part, please do. Together we can make a better world.

Going back to HIPs, we have to report that their quality varies widely. Because there is no money in creating them, sadly some of the providers clearly use staff who have a minimal grasp of property law. So you can expect the wrong title details if the property is leasehold, and also long delays whilst copy leases are obtained. It is surely only a matter of time before someone is fined for not having a HIP because the HIP they have been sold is so dodgy.

It's the delays which are the big problem. Previously, Solicitors would isolate what documents were needed and take steps to obtain them. Now, HIP providers struggle with this and Solicitors hang around waiting for the HIP to arrive, conscious that clients will not wish to pay twice for the same documentation to be produced.

Who suffers? Well, it is the consumer as usual. The consumer who is paying extra for the HIP and then not really getting the marketing tool which it is intended to be.