First-time
buyers may benefit from home information packs (HIPs), according to experts.
The packs, which the government is set to launch on June 1st 2007 are designed to help potential buyers
find a mortgage which suits them.
Information packs for sellers and buyers, many of whom may
apply online for mortgages or
search for a mortgage through an estate agent, are described by the government as "better buying, simpler selling".
Despite being criticised by several groups, including
mortgage lenders, Nationwide Building Society has stated that it is impossible to gauge the effectiveness of the scheme in helping individuals search for a
mortgage until it is "bedded in".
"It will offer some real benefits to
first-time buyers," states company spokesperson Charlotte Sjoberg.
"We are fully supportive of anything that makes the buying process easier and reduces the burden on first-time buyers," added Ms Sjoberg.
However Adrian Coles, director general of the Building Societies Association, has branded the packs "ridiculous", as the government has stated that they will be compulsory to sellers.
"It is ridiculous that someone selling their home without a HIP will be punished by a fine. If people feel that HIPs will be of benefit, they will opt to have one without the need for compulsion," added Mr Coles.
