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Lenders look at seller&#39s pack mortgages

Several lenders are develop-ing mortgages which would include financial assistance for the proposed seller&#39s pack, according to Scottish Amicable national mortgage manager John Malone.

He believes a mortgage product offering assistance or underwriting the cost of the seller&#39s pack could promote lender loyalty as the mortgage rate war is likely to subside later this year.

Plans might include giving a cashback at the end of a mortgage.

Malone says: “Lenders are in discussion about variations in mortgages to pay for the seller&#39s pack, for instance, cashback could be given at the end of a mortgage rather than at the beginning.”

The packs have been wid-ely criticised for the burden on sellers who would have to pay an estimated £500 to £700 in advance of a sale.

The legislation is curr-ently going through Parliament, where it has met with strong resistance from Opposition MPs and in the House of Lords.

Halifax senior press off-icer Alison Kellington says: “We are very supportive of the seller&#39s packs. We have no immediate plans to launch a seller&#39s pack mortgage but we are closely following developments.”

Nationwide senior press officer Jennifer Stoddart says: “We are always looking at ways we could help the homebuying process.”

Pretty Technical partner Kim North does not believe the packs continue to have strong support from high up in the Government.

She says: “With seller&#39s packs mortgages, the issue has now descended to the level of marketing gimmicks.

“However, I imagine all that will be underwritten is the most basic survey which is of limited use. Only surveyors will benefit from this.”

Mortgage Brief, p58

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