End of HIPs to help equity release value

The equity release market could be boosted by the government's decision to immediately suspend the requirement for homeowners to provide Home Information Packs (HIPs).

Communities Secretary Eric Pickles announced that the HIPs were "expensive and unnecessary" and removing them would help boost the market, which in turn will give more value for people taking out equity release schemes.

The move has been widely welcomed by mortgage agents, with Santander's Phil Cliff declaring that it should stimulate the market, as it lowers costs and removed a layer of red tape.

John Heron of Paragon Mortgages is more scathing of the outgoing HIPs, calling them "simply the wrong vehicle" and that they "did the opposite of what they were intended to do".

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