Articles:
Other sites:
Legal:
Part 2 - HIPs - Who will benefit?
What of the HIP itself? Does it provide really sound information to alert the buyer to any ( cheap mortgages ) potential problem areas? The true answer is both positive and negative. On the positive side there is a visual survey (Home Condition Report) but this is not likely to come anywhere near the true structural survey required by a mortgage lender. Defects in the building fabric including damp and decay will be included, as will power installations, insulation and energy efficiency - even potential tree root damage will be mentioned, but some rather more serious situations will not.
- ReMortgaging is it still worthwhile
- Rate Tart is the name coined by the mortgage industry for borrowers who switch mortgage lenders chasing lower interest rates. Call them Rate Tarts if must, but they'll be the richer for it!
- Buy to let – a change for the better
- Do you own a buy-to-let property? There are some proposed new rules regarding tenancy agreements. Find out more. Buy to let – a change for the better
- Mortgages. Big changes in the buying and selling of houses.
- In mid summer 2007 everyone who wants to sell a property will have to prepare a Home Information Packs before they put it on the market. This article explains what the Packs will have to include what they'll cost - and whether we expect them to work!
- Mortgages and Loans. Islamic finance avoids interest.
- Muslims are forbidden by the teachings of the Koran to pay interest. This means that conventional mortgages and loans cannot be used. This article explains the alternatives available for Muslims and defines some of the words used in Islamic finance.
- Mortgages. The return of the Mega-Mortgage.
- All of a sudden, mortgage lenders love mortgages over £500,000. Great if you can afford them.
- Mortgages. Regulations tighten on interest only mortgages.
- Interest only mortgages have been very popular, especially amongst first time buyers. But the FSA has now introduced restrictions. This article explains.
The negative aspect will relate to the items which will not be mentioned, ( insurance ) such as possible subsidence or land slip, flooding risk, presence of rights of way etc. All this, and still the buyer will have to arrange and pay for whatever additional survey the lender will require. Note that all the third party costs are covered, including the governments cut in the form of VAT (estimated at £111m per annum), with little real benefit to either the buyer or the seller but plenty of additional expenditure.
There is also little room in these regulations for the honest seller. Anyone who is prepared under present legislation to warn potential buyers of possible problems is likely to ( medical insurance ) decide that they are covered by the HIP, and that they do not need to comment on anything. There is no obligation within the HIP for the seller to confirm any of the findings, nor any caveat warning the buyer to be aware of the risks involved in property purchase.
The home information packs will be with us and operational in less than 12 months, and history tells us that, no matter how flawed the legislation, governments apparently regard it as a sign of weakness ( remortgages ) to repeal legislation no matter how unpopular it may be or by how far it fails to meet the original good intentions of its originator.
It all seems to add up to more costs for the home owner, more income for the government, more regulation and less workforce mobility. The mobile home ethos begins to look more attractive!
For further infortmation visit www.homeinformationpacks.gov.uk
Your home may be repossessed if you do not keep up your repayments on a mortgage or any debt secured on it. Security by way of a charge on your home may be required.