AMI – reintroduce MIGs - Mortgages - News | moneyfacts.co.uk

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

AMI – reintroduce MIGs

AMI – reintroduce MIGs

Category: Mortgages

Updated: 12/03/2009
First Published: 12/03/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Government has been urged to resurrect mortgage indemnity guarantees (MIGs) in order to help re-energise the mortgage market.

The Association of Mortgage Intermediaries (AMI) says the 2009 Budget represents the ideal opportunity to introduce measures that will help borrowers and intermediaries, and develop a stronger mortgage market.

By reinventing MIGs with a focus on consumer benefit, the trade body says lenders would be able to offer higher loan-to-value mortgages by making loans less capital intensive. This in turn would allow lenders to increase their capacity to lend, and extend the availability of mortgages to a wider range of consumers such as first time buyers.

The abolition of stamp duty on residential property and targeted tax free savings plans to help first time buyers save for a deposit are amongst the other proposals the AMI would like to see introduced.

"With the average deposit paid by first time buyers in November 2008 at 18% of the property's value, it is clear there also needs to be significant demand-side support," said Robert Sinclair, AMI director.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Close