AMI: Mortgage lenders still tightening criteria

Date:Wednesday 5th November 2008

Mortgage lenders are continuing to tighten their lending terms, according to the latest report from the Association of Mortgage Intermediaries (AMI).

Its most recent Quarterly Economic Bulletin noted that mortgage approvals for purchasing houses has dropped to the lowest recorded level and remortgaging has fallen, although it predicts an improvement in the market.

The AMI is calling on the Bank of England for a one per cent cut to the interest rate and a public policy response to the "turbulent housing market".

Chris Cummings, director general of the AMI, said that action to maintain the banking system has not yet had an effect on the mortgage market.

"We continue to meet with the Treasury, Bank of England, Financial Services Authority and Sir James Crosby to set out our case for decisive action," he said.

Last month, the AMI welcomed the Bank of England's cut in interest rates.

At the time, Mr Cummings said it "should provide a much needed boost to the mortgage market" and be helpful for lenders, intermediaries and borrowers.