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AMI reveals broker HIPs opinion

Amanda Jarvis

May 10, 2006

The census also found that most believe home sellers will approach estate agents first to arrange their HIPs.

The results of AMI’s census revealed 68 per cent of members are considering the impact of HIPs on their businesses while 88 per cent feel sellers will approach estate agents first in order to arrange their HIPs. AMI has previously drawn attention to potential ‘unintended consequences’ with the implementation of HIPs, such as the potential for some property companies, estate agents and lenders to use the HIP as a marketing tool to offer mortgages and general insurance products to the prospective house purchaser. This may restrict the consumer’s access to advice and the full range of products. AMI members felt only 3 per cent of sellers would approach lenders first.

AMI members were also asked how they anticipated meeting clients’ demand for HIPs. 7 per cent said they would produce HIPs in-house; 46 per cent would white-label third-party packs; 16 per cent would establish ties with estate agents; 26 per cent will not offer access to HIPs; and 4 per cent would offer ‘Other’ options. 

When asked what action they had already taken in relation to HIP provision, members revealed they had established relationships with estate agents and HIP providers, while others had already planned their own white-labelled pack.

Rob Griffiths, associate director of AMI, commented: “It is pleasing to see the majority of members considering the impact HIPs will have on their businesses, but results from our census seem to show there is still a large degree of uncertainty in the mortgage intermediary community. Many seem to be holding back and waiting for further information before making concrete business plans. 

“This uncertainty may now be heightened by the recent decision to replace the Office of the Deputy Prime Minister (ODPM) with the Department for Communities and Local Government. How this might affect the delivery of HIPs within the Government’s recently published timeline remains to be seen. The results of the first-phase of the HIPs dry-run, due in October, will hopefully put more meat on the HIPs bone.” 

AMI will be publishing a new factsheet next month for members.  It will cover recent HIP developments and provide information for those firms considering the impact of the packs on their businesses.


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