AMI calls for greater support for mortgage market

Date:Thursday 23rd April 2009
Author: Susanna Kavka

The Association of Mortgage Intermediaries (AMI) has said that more support is required for the UK's mortgage market.

In a new report, the organisation suggested that the housing market is still being constrained by a lack of available credit, meaning that potential home buyers are unable to secure mortgages.

The AMI also stated that house prices will continue to fall, although the rate of decline will slow.

"Those with good deposits or plenty of equity can access very competitive rates, but those who can't are unable to take advantage of lower house prices. First-time buyers are the largest group affected," commented AMI director Robert Sinclair.

He went on to say that the government needs to inject more money into the mortgage market in order to take advantage of a rise in consumer interest.

The expert also called for an extension of the stamp duty holiday or the complete abolition of the tax.

Yesterday, chancellor Alistair Darling announced in his Budget speech that the stamp duty holiday on properties costing up to £175,000 will be extended until the end of this year.