Lenders have rejected claims they are refusing to accept information supplied by people selling their homes submitted along with Home Information Packs (HIPs) in order to make more money.

Anti-HIPs campaigners believe that some high street mortgage firms do not trust property searches conducted by private companies.

But lenders said they will accept these searches as long as they are approved by a solicitor or carried out by the local authority.

HIPs came into force for larger houses on August 1. Under the new legislation house vendors now need to provide a pack that contains information about the property and an energy performance certificate.

The scheme aims to cut the number of transactions which fail at the last minute, and also to encourage homeowners to cut the amount of energy they use.

Sellers now have to provide a search document including such details as information on drainage and planning applications, which can be provided by either a personal search firm or the local authority.

Most buyers choose to go for private company searches as they tend to be cheaper. However, some lenders do not accept searches by private companies unless the buyer's conveyancer approves the document.

It has been suggested that this policy will force some sellers to complete a second, more comprehensive search, effectively doubling their costs.

However, HSBC, which had been named as one of the lenders involved in the practice, sought to clarify its position by saying the policy did not only apply to HIP submissions.

In a statement, it said: "We have never accepted private company searches. We do not believe they carry sufficient indemnity insurance to cover any problems with a search at a later date.

"This policy applies to all mortgage approvals, whether HIPs are involved or not."

And a spokeswoman for the Department of Communities and Local Government backed the bank. She said: "As HSBC has made perfectly clear, this is not an issue about HIPs. Mortgage companies have always taken different approaches to personal searches.

"All HSBC has done is to restate its existing policy not to accept such searches."

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