AMI highlights mortgage funding issue

Date:Friday 23rd July 2010
Author: Max Freedman

The Association of Mortgage Intermediaries (AMI) has pointed out that there is a significant mortgage funding issue that needs to be resolved.

Director of the industry body Robert Sinclair claimed that a "practical solution" is required if the mortgage market is to become sustainable.

He said: "All the main banks face challenges to their ability to fund mortgage lending as the Special Liquidity Scheme reaches its repayment phase early next year."

Mr Sinclair suggested there is a greater degree of certainty around now that the emergency Budget has been published and deficit reduction plans have been announced.

In his view, this should help the industry to recover, as it is important that consumers can get their hands on funding when they want to buy a property.

This week, the same AMI spokesperson responded to Financial Services Authority guidelines on responsible lending by saying that he supported the approach taken by the organisation.