Council of Mortgage Lenders highlight HIPs as Hindering UK Conveyancing

UK lenders who have clear interest in the future of conveyancing have recently commented on a Law Society Consultation on Improving Residential Conveyancing.

Lenders rely on conveyancing solicitors and conveyancing lawyers to act for them both at the outset of a mortgage transaction or where lenders exercise their power of sale.

The CML express doubts as to whether the introduction of HIPs has assisted the conveyancing process and, suggest as which? have done, that HIPs may actually limit consumer choice because of tie ins and referrals.

The CML particularly highlight the plight of home owners facing repossession : “For borrowers in difficulty trying to sell a property to overcome financial problems it is a further expense. Lenders assist where possible but for customers experiencing payment problems a HIP is an added expense.”