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The Director of Mortgage Beaters, Roy Bookman, knows what's going on in the ever-changing world of mortgages. So what's new, Roy?
“Speeding up the house buying process.”
Wednesday, 19 December 2007
A review aimed at speeding up the house-buying process in England and Wales has been launched by the Conservative party.
Property expert and TV presenter Kirstie Allsop will help to conduct the review, which will also seek views from the industry and members of the public about whether moving home can be made less expensive and quicker.
The Tories, who have consistently attacked the government's controversial Home Information Pack (HIP) scheme, say changes are needed, because properties put on the market currently take an average of up to three months to sell. Not too bad, I'd have thought, considering mine took nearly 2 years!
In addition some £339 million of borrowers' money equating to 30% of transactions is wasted each year as a result of sales falling through.
The government has always argued that HIPs will speed up the home-buying process and make it more transparent, but critics claim it will make it more expensive to sell a property whilst we in industry look upon the entire scheme as a mess.
So what can be done to make the process more efficient? The Tories suggest that binding mortgage offers at the point of purchase could be one answer and they could providing the offer was made in the knowledge that the purchaser has an instant binding decision from the lender.
At present most purchasers at are only armed with a decision in principle, but this can be withdrawn once the lender has made its affordability and credit checks.
Perhaps if lenders, working with brokers, and with the aid of new technology carried out full credit and affordability checks much more quickly for clients before they started house hunting it would make life a lot easier for everyone.
Other areas which will be examined include the practice of gazumping, and whether estate agents need a greater degree or training, qualifications or regulation. Well, we brokers have had to undergo it - so why shouldn't they?
Property expert and TV presenter Kirstie Allsop will help to conduct the review, which will also seek views from the industry and members of the public about whether moving home can be made less expensive and quicker.
The Tories, who have consistently attacked the government's controversial Home Information Pack (HIP) scheme, say changes are needed, because properties put on the market currently take an average of up to three months to sell. Not too bad, I'd have thought, considering mine took nearly 2 years!
In addition some £339 million of borrowers' money equating to 30% of transactions is wasted each year as a result of sales falling through.
The government has always argued that HIPs will speed up the home-buying process and make it more transparent, but critics claim it will make it more expensive to sell a property whilst we in industry look upon the entire scheme as a mess.
So what can be done to make the process more efficient? The Tories suggest that binding mortgage offers at the point of purchase could be one answer and they could providing the offer was made in the knowledge that the purchaser has an instant binding decision from the lender.
At present most purchasers at are only armed with a decision in principle, but this can be withdrawn once the lender has made its affordability and credit checks.
Perhaps if lenders, working with brokers, and with the aid of new technology carried out full credit and affordability checks much more quickly for clients before they started house hunting it would make life a lot easier for everyone.
Other areas which will be examined include the practice of gazumping, and whether estate agents need a greater degree or training, qualifications or regulation. Well, we brokers have had to undergo it - so why shouldn't they?
# posted by Roy Bookman : 14:11
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