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More Government help needed – AMI

More Government help needed – AMI

Category: Mortgages

Updated: 27/07/2010
First Published: 10/07/2009

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 It is now over 6 months old so the content may be out of date.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 needs to do more to help a wider group of lenders if the recent positive signs of positivity in the housing market are to be turned into a recovery, according to the Association of Mortgage Intermediaries (AMI).

The call comes on the back of the Bank of England's announcement that interest rates are to remain at 0.5 per cent, while its £125 million quantitative easing programme is to continue.

"AMI is unsurprised by the Banks' decision to hold the base rate at its current level," said it director, Robert Sinclair. "There is simply no data that would encourage the committee to increase rates at this point."

However, the association says more must be done to help an extended range of lenders, including building societies and non-deposit taking institutions, if lending is to be made more accessible.

Mr Sinclair said that while the committee seems to be encouraged that its actions to date are having the desired effect, increased capacity in the mortgage market is yet to be seen and that the sector is competitively constrained.

With the exception of the six core firms, there is little capacity to lend, he said, which is stopping consumers getting access to loans they want and need.

He added: "AMI continues to call on government and regulators to look wider than the activities of a few banks and consider helping a wider group of building societies and specialist lenders who have previously been able to provide excellent products for customers."

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