AMI calls for more liquidity in home loan market

The government must intervene to ensure that there is sufficient liquidity in the mortgage market, an industry body has said.

Director of the Association of Mortgage Intermediaries (AMI) Robert Sinclair said: "In reality any reduction in the interest base rate is now unlikely to have the desired effect, as this will not be fully passed on by lenders. Any reduction is simply likely to damage savers further."

He added that banks continue to be constrained in their lending by a lack of liquidity - meaning businesses and consumers are struggling to get loans and credit.

Describing itself as the "voice of the mortgage intermediary", the AMI is a non-profit organisation that is funded by its members and industry supporters.