Mortgage certificate idea suggested
Mike Ockenden, director-general of the Association of Home Information Pack Providers (AHIPP), believed that the way forward for the market was for buyers to have a certificate stating the mortgage they have secured and how much they borrow.
Ockenden said: “There should be a move to create a system for buyers that when they confirm the finance they are getting they get a document confirming it. This will allow the estate agent to accept the offer and make the process much easier.”
James Scott-Lee, residential estate agency chair for the Royal Institution of Chartered Surveyors, agreed it could work but questioned the policing of it.
“This is a laudible idea but the reality is that it is a serious amount of the responsibility can be put upon the buyer and I don’t think it’s completely workable. What if the buyer is unable to produce this document, will it be deemed a criminal act?”
However the idea was dismissed by Ray Boulger, senior technical manager at John Charcol. He claimed that it was ‘impractical idea’ due to current conditions.
Boulger said: “That is worth little in the current market as a lender could offer 95 per cent loan-to-value which will be reduced to 75 per cent within a week. So it does have a benefit but when you find a property you may use a different lender and the paper would only be valid for that time. Equity circumstances may change too.”